NEW YORK (TheStreet) -- While concerns of a broader market pullback were beginning to take hold, U.S. stocks surprised many investors with a big rally on Wednesday as the S&P 500 climbed 1.26%.
On CNBC's "Fast Money Halftime Report" show, Stephanie Link, portfolio manager at TIAA-CREF, said investors should keep their portfolio allocations in foreign stocks, as central banks around the world continue to ease monetary policies and economies begin to improve.
That's not to say investors should ignore the U.S., though, Link added. Investors just need to be more specific and choose certain sectors or stocks when it comes to buying stocks. Economic data and housing numbers continue to improve and she believes cyclical stocks like financials and energy will outperform more defensive sectors.
One possible roadblock ahead? Link said if bond yields "explode higher," this could weigh on equities for a while.
Josh Brown, CEO and co-founder of Ritholtz Wealth Management, and Dan Greenhaus, chief global strategist at BTIG, both like financial stocks, saying the sector's outperformance is more important than the apparent breakdown in the transport sector.
Greenhaus said he remains overweight in financial stocks and expects the sector to continue outpacing the broader market. Concerning the overall market, he made the case that a correction doesn't necessarily have to be a pullback. Instead, it can come in the form of the market trading sideways for an extended period of time, much like how the previous six months have been.
Although transport sector stocks have been underperforming, Pete Najarian, co-founder of Optionmonster.com and Trademonster.com, did point to a recent rally in airline stocks, which started on Tuesday.