NEW YORK (TheStreet) - After a volatile week of trading, U.S. stocks joined a global equities rally on Monday, with the S&P 500 climbing 1.3% and the Dow Jones Industrial Average rallying 1.2%. 

A lot of this recent volatility has been caused by investors trying to anticipate the Federal Reserve's stance on a potential rate hike later this year. 

The committee will release its statement later this week, so investors could find out relatively soon, according to Stephen Freedman, head of cross asset strategy at UBS Wealth Management. 

However, investors shouldn't shy away from stocks, because there's still earnings growth -- with the exception of energy companies. As earnings grow, stocks generally move higher, he reasoned. 

And bull markets "don't die of old age," Freedman added. Instead, it's generally extreme valuations and/or an economic recession that ends the rally. 

Because the recent economic recovery has been so slow and steady though, there hasn't been the same excesses in spending or high valuations that generally accompany maturing bull markets. 

SPDR S&P 500 ETF SPY data by YCharts

As a result, it seems like this bull market is mid-cycle, Freedman determined. However, he did acknowledge that the market's current valuation is moderately higher than the long-term average. 

For now, he's not worried. If valuations continue to climb and the economy worsens, then it will be time to be concerned. 

As for which stocks to buy, Freedman says broad investing is perfectly acceptable. But for those looking to be a bit more specific, he likes the industrial, information technology and consumer discretionary sectors. 

Industrials and information technology companies will benefit from a boost in corporate spending, while consumer discretionary companies will benefit from lower energy prices. 

However, be leery of utility and telecom stocks, which are very "interest rate sensitive" at a time when rates seem most likely to head higher in the future, Freedman concluded.