The U.S. stock market's rally probably isn't anywhere near over, experts predicted Friday.
Equities posted a three-week win streak Friday, with the major averages posting record highs.
Because the market is up, investors should be careful, independent investment consultant David Darst said in an interview with CNBC's "Closing Bell."
However, he noted that famed mutual fund manager John Templeton always said bull markets mature on optimism and die on euphoria.
"Keep your sense of perspective. We are just now entering optimism. We're nowhere near euphoria. This thing can still run," he said.
Many have credited the recent rally to President-elect Donald Trump's victory on Nov. 8. However, Chris Johnson, director of research for JK Investment Group, said it is more of a "certainty rally" now that the election is over, rather than a specific reaction to Trump.
"If you look since 1950, the market doubles its usual performance from being week of November until the end of December after any election," Johnson said.
Whatever the reason, he still believes the upside can continue, although he thinks there may be a small pullback at some point when "everybody gets back to trading."
One of the market's winners has been financials, thanks to rising interest rates and expectations of deregulation under the Trump administration.
"Finally this sector is going to face some tailwinds instead of headwinds," Surevest Wealth Management CEO and chief investment officer Robert Luna said.
Mark Luschini, chief investment strategist at Janney Montgomery Scott, would also wait and be patient with financials, as well as metals and mining, because he believes the stocks have gotten a little bit ahead of themselves.
"Some backing and filling to the tune of 5 to 10 percent would be in order before I would be a willing and able buyer at that junction, because I do think they stand to benefit from the Trump bump that lasts well into 2017 and beyond," he said.
One name Robert Luna is looking into buying is Polaris Industries, which makes motorcycles, snowmobiles and other vehicles. He sees a lot of good catalysts, including the Trump infrastructure plan, that should create jobs for Middle America, the company's consumer base.
However, he would cut his position in steel, which has seen a 60 percent run since Trump's win.
Disclosures: Luna owns JPM. Luschini owns PNC HAL.