U.S. markets seem "fully valued" and better opportunities exist in other pockets of the globe, one market watcher said Thursday.
U.S. stocks were trading more than 1 percent higher Thursday as the traded above its record close. Perceived overvaluation in stocks make Europe and Japan more appealing, said Jeff Hussey, global chief investment officer at Russell Investments.
"There's a variety of metrics out there that make the market look fully valued if not rich. So we've been neutral U.S. equities since December and have been favoring Europe and Japan as some alternative areas for better return prospects," he said in a CNBC "Power Lunch" interview.
He added that he would be "happy" to see a 5 percent pullback in U.S. stocks.
U.S. equities may not have reached their peak, Tony Roth, chief investment officer at Wilmington Trust, said Thursday. Stocks could still move higher as it could take months for the Federal Reserve to abandon its near-zero interest rate policy.
Roth said he does not see a market correction approaching in the near future, he told "Power Lunch."