Perfect storm for market correction: Expert

Best mid-cap plays: ADS, SWKS & AET

Current market and economic conditions have created the perfect storm for a 10 percent market correction, Strategic Wealth Partners CEO Mark Tepper said Thursday.

"We're looking at really stretched valuations right now," Tepper said in an interview with "Power Lunch."

He called the 's forward P/E [price-earnings] ratio of 17 a "red flag."

Plus, "we've got deteriorating earnings and we've got fading economic momentum," he added. Throw in the strong dollar and looming interest rate hikes, and "I do think that a pullback is very much in the cards."

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Tepper believes bonds will likely outperform equities over the next three to six months. However, he's constructive on equities on a 12-month basis.

Brian Lazorishak, co-manager of the 4-star rated Chase Midcap Growth fund, concurred that a 10 percent correction is not out of the range of possibility, but said he's constructive on the market.

Specifically, he likes mid-cap stocks. While they have enjoyed a recent run, he believes they can move higher.

His picks are Alliance Data Systems, Skyworks Solutions and Aetna.

For his part, Tepper likes banks, including Wells Fargo, JPMorgan and KeyCorp.

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—CNBC's Jackie O'Sullivan contributed to this report.

Disclosures; Lazorishak, his family and his firm do not own ADS, SWKS, AET. Tepper, his family and his firm do not own WFC, JPM and KEY.