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We could see a pullback in markets: Managers

Increasing headwinds such as dollar strength and volatile oil prices could lead to uncertainty and slower global growth, said Sarat Sethi, managing director at Douglas C. Lane & Associates.

"It's been three years since we've actually had a 10 percent correction," he told CNBC's "Power Lunch" on Friday. "If you have some cash on the side, you are going to get much better opportunities in sectors like retail and industrials."

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Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

Stephen Wood, chief market strategist at Russell Investments, also said that a "pullback is something that would be reasonably expected," given that the U.S. markets have been at highs for the past few years.

He is looking to Europe and Japan as attractive investments. However, he recommends an active management strategy rather than broad sector moves.

"Go balance sheet by balance sheet, and income statement by income statement," he said.

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