Commonwealth's McMillan: 'The risk is in the Mag 7' and growth stocks

Brad McMillan, chief investment officer at Commonwealth Financial Network, says that while stock market valuations look high, "they're not crazy either," because the companies are making money at levels that justify the higher prices. He says he is leaning towards value — and holding cash while waiting for buying pullbacks — and away from the biggest names, noting that the Magnificent Seven stocks are "where the risk is."  He's not expecting a recession, noting that employment is holding and consumer spending is strong, conditions that normally forestall economic downturns.

Todd Rosenbluth, head of research at VettaFi, says the long-awaited rally in small-cap stocks may be in the offing, as he picks a small-cap value fund from VictoryShares as his  "ETF of the Week."

Jeffrey DeMaso, editor of The Independent Vanguard Adviser, brings his "buy the manager, not the fund" approach to Vanguard's funds and ETFs, but also talks about the areas of a portfolio where investors will want to go outside of the world's biggest fund company to get real complete a well-diversified portfolio.