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Power Play: Where to invest in the United States

Pedestrians walk past the New York Stock Exchange in New York.
Michael Nagle | Bloomberg | Getty Images
Pedestrians walk past the New York Stock Exchange in New York.

Stocks are rallying on Friday, with the Dow, Nasdaq and S&P 500 back above their pre-Brexit vote levels.

Benjamin Pace, chief investment officer of HPM Partners, tells CNBC's "Power Lunch" he has a S&P year-end target of 2200.

"The market situation here is better than rest of the world. I'm a little underweight global equities, like U.S. large and small-caps," Pace said.

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Jack Ablin, chief investment officer of BMO Private Bank thinks U.S. equities are expensive right now, but given the global uncertainties, he is sticking with mid-cap stocks.

"The mid-cap S&P 400's price-to-sales ratio is trading just over its historical median. Mid-cap revenues have expanded 1.8 percent over the last four quarters while large-caps witnessed sales fall fractionally," Ablin said.

Small-caps, mid-caps and large-caps are all higher during trading, but year-to-date, small-caps and mid-caps have outperformed large-caps.