Earlier in the year, Peroni had predicted the Dow would reach 20,000 by the end of 2015.
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CNBC contributor Michael Farr, president of Farr, Miller & Washington, noted that the market has been making new all-time highs for a several years.
Now, there are a number of concerns, including 2 to 2.5 percent gross domestic product growth over the last five years that has been "years sustained and buoyed by all sorts of monetary policy stimulus."
"What happens when that stimulus goes away? The Fed is getting ready to back off. I think that this is a time when you have to be cautious," Farr told "Power Lunch."
That said, he would stay invested.
"You own but you take risk off the table. You make sure you've got solid balance sheets in your portfolio—companies that are earning money, selling stuff that you understand, and growing," Farr said.
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However, Peroni thinks this market is seeing investors accepting more risk for more reward.
That's why he'd look at names with "somewhat higher" price-earnings ratios. Specifically, he likes biotech, aerospace/defense, ecommerce, semiconductors, consumer discretionary and food names.
"Be careful. I think that this stuff is very risky.… I think while it might go up in the short term, this is not a time for the average investor to be taking on more risk," he cautioned.
—CNBC's Brenda Hentschel contributed to this report.