The stock market may have gotten a little bit ahead of itself, but there are still a couple of "real tail winds" ahead in 2017, investment expert Brad McMillan told CNBC on Thursday.
For one, earnings are back in positive territory and will probably grow faster, he said. Plus, valuations are heavily correlated with consumer confidence, and that is rising, he added.
"If you look at the market as a whole, you actually might get a double whammy. It could turn out to be a very, very good year so we're not all that concerned about any short-term possible pullbacks," the chief investment officer of Commonwealth Financial Networks said in an interview with "Power Lunch."
Stocks have been on a tear higher since President-elect Donald Trump's stunning victory Nov. 8, with investor sentiment nearly doubling since the election. According to the American Association of Individual Investors, 43.1 percent of individual investors are now bullish, compared with 23.6 percent just before the election.
That's led some market watchers to become concerned about the "huge" expectation built into the market right now.
"We think happy days are here again, that we're going to have reform, we're going to have stimulus, we're going to have profits, we're going to have growth," Jack Ablin, chief investment officer of BMO Private Bank, said on "Power Lunch."
"We had a market that was already somewhat frothy to begin with and now we've ramped it up to the next level," he added.
He said eventually fundamentals and the economy are going to be needed to support the market.
Nancy Tengler, chief investment officer of Heartland Financial, is still overweight equities but said investments must be chosen wisely.
"It is a difficult time because you don't want to chase this market and yet you want to participate," she told "Power Lunch."
She suggests looking for areas that are underperforming. For example, when tech stocks tumbled immediately after the election, it was a great time to jump in and buy Facebook, she said.
Now, Tengler sees an opportunity to continue to round out her firm's holdings in large-cap pharma and biotech.
Meanwhile, the bond market has been hit as investors cash in their fixed income and move into stocks. However, Greg Peters, senior investment officer of Prudential Fixed Income, isn't convinced the bond bull market is necessarily over.
"If you look at the growth dynamics, the inflation dynamics and demographics, I think it's way too early to say the bond reign is over," Peters said on "Power Lunch."
— CNBC's Jennet Chin contributed to this report.