US Markets

With bears ‘starting to give up,’ market has opportunity to go higher, expert says

Santoli: Rally for second straight day is impressive
Santoli: Rally for second straight day is impressive

The stock-market bears are starting to give up, investing expert Michael Yoshikami told CNBC on Friday.

"The sentiment out there is just really, really switching. The markets are more broadly based in terms of their rallies," the founder and CEO of Destination Wealth Management said in an interview with CNBC's "Closing Bell."

"So, I think the market does have the opportunity to go higher even if the fundamentals maybe don't support it so much."

Equities hit new record highs on Friday, a day after President Donald Trump promised to release a tax plan in the near future.

While the market has climbed higher since Trump won the election, Yoshikami believes more people are now starting to get into the game.

However, the one thing the market isn't doing is taking into account potential instabilities, private investor Evan Newmark told "Closing Bell."

Right now, investors are "seeing everything glass half full," like tax cuts — and not trade wars, he said.

"The market right now is susceptible to frankly the president doing something kind of silly," said Newmark, also a CNBC contributor. "I don't want to say something bad is going to happen, but bad things happen every year. You just don't know when they are going to happen."

While valuations for small- and mid-cap stocks are in "nosebleed territory," there are still a few areas that are nowhere near all-time highs on a relative basis like oil and miner stocks, he noted.

Independent investing consultant David Darst, former chief investment strategist with Morgan Stanley Wealth Management, thinks equities may be reaching a turning point.

"The market has been slow, slowly climbing up over a pass. We're either going to enter sunlit uplands — further heights — or a desert below," he said in an interview with "Closing Bell."

Because there is not an excess of euphoria, he remains constructive on the market for the long term.

— CNBC's Fred Imbert contributed to this report.