The Dow just closed at a record high — here's how investors are playing the rally

The Dow hit another record high Wednesday, closing its fifth straight session in the green – the index's longest winning streak since mid-July. Here's what four experts had to say about the record run:

  • "You need to play the market the right way and I think the right way, right now is to get a little bit more defensive. Because these defensive groups, especially the health-care stocks, which are a little overbought near term, but I think still have a lot further to run for a number of different reasons. ... These groups are holding up and are actually slightly outperforming the market, so if you get a little bit more defensive right now, you limit your downside if the market rolls over," Matt Maley of Miller Tabak explained.
  • "Semis have been on an absolute tear for years. There have been, you know, supply shortages not just at Intel but across the board, here. And a lot of consumers of chips have built a lot of inventory, particularly as lead times for these products have stretched and as these shortages have grown. So there is some risk for, perhaps, at least two quarters of this inventory work-down across the board. So some of the broad-based guys, I think, are a little bit more at risk right now," said Christopher Rolland of Susquehanna Financial.
  • "The United States economy is really rolling. It's probably going to continue for some time. And generally, when the U.S. economy is rolling, the world economy comes right behind it. So to sort of jump off the track right now, is sort of missing the bigger picture. I think people need to be more bullish, not less, because as the global leader, both in consumption, manufacturing and everything you can think of, when we rise, everyone else should come along. But it hasn't quite been that way. And I expect that to happen. And so we hear all these crosscurrents. I believe that people should get bullish going into the fourth quarter, not more defensive. I think that's the wrong strategy," said Jamie Cox of Harris Financial Group.
  • "I bought Blackstone yesterday afternoon. I want some exposure, I wanted to take an opportunity in the financials. There is that search for yield out there so that's why I added," said Joe Terranova of Virtus Investment Partners.

Bottom line: As the markets continue to rally, investors are being selective when it comes to what to buy now.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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