There may still be some upside in the U.S. stock market, but investors are better off looking to international markets for more return on their money, two experts told CNBC on Thursday.
Equities have soared in the months since President Donald Trump's election victory, and that has some concerned about valuations.
For Eric Freedman, chief investment officer at U.S. Bank Wealth Management, developed international and emerging markets have been the laggards in the global picture — and he thinks that's where the next opportunity is.
"You're seeing a thrust in economics as well as a thrust in data, not just in the U.S. but across the pond," he said in an interview with "Power Lunch."
Stocks closed lower Thursday. Just a day earlier, the major indexes posted their best day of 2017, with the Dow crossing 21,000 for the first time.
Steve Rees, head of equity strategy at JPMorgan Private Bank, is "comfortable" holding onto his U.S. exposure, but thinks there are great opportunities to put new money to work in Europe.
"Earnings are recovering. The valuations look attractive versus the U.S. And the economies, for the first time in a long time, are starting to look a little bit better," he told "Power Lunch."
However, he acknowledged that there is political risk. For one, there is concern that if Marine Le Pen wins the presidency in France, the country could leave the European Union.
"We don't want to downplay the polls or just the politics in general but what we can't do is wait for everything to be clear," said Rees.
He's advising his clients to "leg in,'" or start to incrementally buy, and stay currency hedged.
"Europe could surprise to the upside at some point this year," Rees said.