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4-star pro reveals favorite year-end plays

Stocks continued their upward advance Monday with investors wondering if the adage "buy high and sell higher" makes the most financial sense, at least into year's end.

Over the past three weeks, the Dow Jones industrial average has gained 7.3 percent while the S&P 500 has risen 7.7 percent; that's the best three-week performance for both indexes since October 2011.


A trader works on the floor of the New York Stock Exchange.
Getty Images
A trader works on the floor of the New York Stock Exchange.

On CNBC's "Power Lunch" Gene Peroni of Advisors Asset Management said he thinks for the next six weeks, the path of least resistance should remain to the upside, in part, because the market has reconciled anxieties.

"Ebola fears, and the outcome of the elections are no longer looming over the market," Peroni said. Also third-quarter earnings have been stronger than expected. According to Thomson Reuters data, of 448 companies in the S&P 500 that have reported earnings, 74.6 percent beat expectations,

John Buckingham, the chief investment officer of the four-star Morningstar rated Al Frank Fund, is also positioning for additional gains into year-end.

"Don't forget valuations in the market are reasonable," he said, also on CNBC's Power Lunch. "And given the yield on the 10-year Treasury is still around 2.3 percent, dividend yielders should continue attract new money."

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If you're looking to put money to work, Buckingham said he's finding a lot of value in technology stocks. In fact, tech is the largest weighting in his fund, which is returning more than 13 percent in a year.

"Also I'd add money to materials and energy stocks," added Buckingham, explaining that both sectors had lagged but he thought would start to catch up.

Peroni add that he's focusing on industrials and materials as well as technology, health care and consumer discretionary stocks.