Right now there doesn't appear to be anything that will stop the market rally, closely followed strategist Jim Paulsen told CNBC on Tuesday.
"We're just in such a sweet spot because growth keeps going, we're at full employment and yet we've got no aggravation to inflation or interest rates," the chief investment strategist at Leuthold Group said in an interview with "Power Lunch."
Plus, the 10-year Treasury and the U.S. dollar are both down on the year, he noted.
"There's no brake in front of this stock market. That's why I think we've got to go higher until we get more pressure on stocks," Paulsen said.
Solid economic data and renewed hopes for tax reform have helped propel U.S. stocks to record highs recently.
On Tuesday, equities once again hit record intraday highs after Wal-Mart announced a large buyback and Honeywell said it was going to split into two companies.
For those who keep waiting for the market to correct, expert Steve Auth believes they've already missed it.
He told "Power Lunch" there has already been a rolling correction over the last 16 months.
"We think the bear's already been through the camp and done his damage," said the chief investment officer for equities at Federated Investors. "If you look at the big stocks in every single sector, they've had 5 to 10 percent corrections. It's been a rolling correction so the average looks like it's really gone nowhere."
He likes small-cap value stocks, financials and energy.
Paulsen also thinks financials will continue to lead. While there is caution surrounding the group, he said what will ultimately win the day for the sector is the direction of rates.
If the 10-year Treasury yield breaks 2.60 percent, "it's going to continue to steepen the yield curve. It's going to continue to force the Fed to keep following along with rate hikes. It's going to play right into strength for the financials," Paulsen said. The 10-year was at 2.343 percent late afternoon Tuesday.
— CNBC's Fred Imbert contributed to this report.