The stock market has been hitting new record highs recently, with the S&P 500 lifting to another intraday high Wednesday. Yet low volume and low volatility have ruled the market recently and that has some investors wondering how to put their money to work.
"In this low volatility environment, investors should extend their time horizon, expect stocks to be higher a year from now, and buy on the dips," said Erik Ristuben, chief investment strategist at Russell Investors.
He thinks it will be a tough year for fixed income, but likes equities—particularly cyclical equities. Just be sure to have a balanced portfolio.
"We overweight cyclical sectors like consumer discretionary and financials," Ristuben told CNBC's "Power Lunch."
"We balance that with an overweight to health care, which is more of a defensive sector."