For those looking to get into the market, small caps may be the place to look, according to Tom Lydon, president of Global Trends Investments and editor of ETFTrends.com.
"In the last three years, small caps have underperformed large caps and as we know over time they do outperform," he said in an interview with "Closing Bell."
Investors are already pouring into small caps, with the iShares Russell 2000 ETF generating almost $10 billion in inflows in the past five weeks, he pointed out.
"I think that trend is going to continue during the pro-growth initiative that Trump's all about in 2017," Lydon said.
Steve Grasso, director of institutional sales at Stuart Frankel, would also stay with smaller companies, especially if the U.S. dollar remains strong.
"We're looking into that corporate tax reform, we're looking into personal tax reform. All these levels are coming in drastically, which is going to benefit the consumer and corporations that are domiciled inside the United States," Grasso, who is also a CNBC market analyst, said on "Closing Bell."
He also wouldn't worry about missing out on European stocks, noting that there is more than enough time to catch up.
"That trade is probably a couple of months away," he said.
U.S. stocks closed higher Monday in low volume trade, with the Dow Jones industrial average ending up 39.65 points to 19,883.06.
— CNBC's Evelyn Cheng contributed to this report.