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Power Play: Betting on Europe

An employee works on a Mercedes-Benz S-Class Coupe, in Stuttgart, Germany.
Martin Leissl | Bloomberg | Getty Images

European stocks have been on fire, outperforming U.S. stocks year-to-date.

Should investors take a look at Europe now?

One market veteran believes now is the time to get in, while another thinks it's too risky.

"Europe performed well during the first half of 2014, but underperformed in the second half. We believe Europe will avoid a triple-dip recession and equity prices do not reflect that outcome, " Lisa Shalett, head of investment and portfolio strategies at Morgan Stanley Wealth Management, told CNBC's "Power Lunch" on Friday.

Shalett added political and structural changes are taking place and the economic outlook will improve in Europe.

Read More Europe closes higher after US payrolls, Greek saga drags on

However, Jeff Kleintop, chief global investment strategist at Charles Schwab, finds Europe expensive given the challenges over there.

"Don't be fooled into thinking European earnings growth is supported by economic fundamentals. A weaker currency is no substitute for a stronger economy, " Kleintop said.

The STOXX Europe 600 index has gained about nine percent this year compared to , which is flat.