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Not too late to reap gains after S&P 500 hits high: Strategist

What are markets looking for?

The may have struck an all-time intraday high on Monday, but Wells Fargo Investment Institute's Paul Christopher believes more buying opportunities will crop up in the second half of the year.

Christopher's midpoint estimate for the S&P 500 is 2,240. On Monday, the index was up 5 percent to nearly 2,135.

"It's not too late," Christopher told CNBC's "Squawk on the Street." "We think there's some decent upside here, and there will be some pullbacks, we expect."

Those pullbacks could coincide with the U.S. election in November and potential announcements of further referendums in Europe following Britain's vote to leave the European Union last month, said Christopher, head global markets strategist at Wells Fargo Investment Institute.

Markets are looking for both signs of growth and signs of encouragement for growth, he added. The U.S. jobs report on Friday delivered the former, while the latter came from Japan on Monday, he said.

Stocks rallied following the landslide election of Prime Minister Shinzo Abe in Japan and promises of further stimulus measures for the country.

Tony Crescenzi, market strategist at Pimco, said the developments send a message that Japan will at least keep treading water just above stall speed, despite signs that stimulus measures thus far have been largely ineffective.

The Japanese yen has appreciated even as the country's central bankers have guided interest rates into negative territory, a strategy that should weaken the currency.

The expectation of further stimulus is "enough for investors, because it's a Goldilocks scenario in a way, because it's growth without inflation," Crescenzi said.

Still, bond yields in many parts of the world have recently hit record lows as investors flock to safe-haven assets. Markets currently expect interest rates to remain low for the remainder of the decade, according to Crescenzi.

Asked whether bond investors searching for yield must embrace riskier assets, Crescenzi cautioned against trying to time the diversification benefits of bonds. Doing so is tantamount to dropping auto insurance because you haven't had an accident in a while, he said.

Investors should not abandon the insurance that bonds afford just yet, but they can move away from Treasurys and into other products, he said.

Crescenzi suggested a three-point "bend but not break" approach that puts capital preservation first. That entails embracing a core strategy and cash management. He said investors have too much socked away in cash deposits and money market funds these days.

Second, investors should consider income and credit strategies and liquid alternatives to reduce illiquidity and complexity premiums.

Third, taking a view of what could go right, investors could consider commodities, multiasset investment and real-return strategies like Tips, or Treasury inflation-protected securities.