As the Dow approaches its 20,000 milestone, investors may be tempted to hop on the bandwagon and join the rally, but they should never abandon their long-term plans, analysts told CNBC on Tuesday.
David Lebovitz, a market strategist at JPMorgan Asset Management, said there's a lot priced in to the market right now, but it doesn't feel overextended. Economic data from the third and fourth quarters showed there's an acceleration in growth, he said on "Squawk Alley," meaning that at least part of the rally is built on improving economic fundamentals. Still, just because there may be "room to run" doesn't mean investors should throw caution to the wind, he said.
"The stock market thinks Donald Trump is going to bowl a 300 here, and there's going to be some sort of disappointment along the way, so I wouldn't get too wrapped up in the narrative which has evolved in the market over the past month or so," he said. "I'd make sure that you're sticking to your long-term investment plan, making sure you have exposure to industries which should benefit from the incoming administration's policies, but also maintaining exposure to some stuff that's unloved right now."
Brian Rehling, co-head of global fixed income strategy for Wells Fargo, said the market is front-loaded, meaning the majority of this big move came in the first month, but that doesn't necessarily mean the gains are over.
Lebovitz said his firm expects the dollar to strengthen a bit, which may hurt returns in international markets. However, he said emerging markets will be the growth engine of the economy over the coming decades, and said this may be an opportunity for investors to ensure they have enough international exposure.
"As we look ahead, we think there are probably more opportunities in the U.S. market than there are in international markets," he said.