Stocks have climbed the wall of worry fairly well so far in 2014, yet investors should not expect a fierce rally in the second half due to stretched valuations, says Kristina Hooper, US Investment Strategist for Allianz Global Investors. Hooper says technology is one of the few areas where multiples remain reasonable on a historic basis, adding that top-line and dividend growth look good for the sector. Finally, she says that the lack of volume and volatility on Wall Street should remind investors to be selective going forward as opposed to a strategy based on the Federal Reserve's loose money policy which is intended to float all boats no matter the quality.

More from Video

The CEO of Wall Street Disruptor Symphony Reacts to Tuesday's Market Declines

The CEO of Wall Street Disruptor Symphony Reacts to Tuesday's Market Declines

60 Seconds: What is the Yield Curve and Why is it Screaming Recession?

60 Seconds: What is the Yield Curve and Why is it Screaming Recession?

Coke Has Figured Out How to Stay Relevant (Watch)

Coke Has Figured Out How to Stay Relevant (Watch)

Jim Cramer: If You're Afraid of the 10-Year Yield, Go to Cash

Jim Cramer: If You're Afraid of the 10-Year Yield, Go to Cash

Video: Jim Cramer on Rising Interest Rates, Trade Worries & Caterpillar

Video: Jim Cramer on Rising Interest Rates, Trade Worries & Caterpillar