US stocks (^DJI, ^IXIC, ^GSPC) continue to climb as the bull market maintains its momentum. Aptus Capital Advisors portfolio manager David Wagner joins Wealth! to share his outlook on the current market landscape.

Wagner observes that the market is reaching new highs "from different whys." While the "Magnificent Seven" tech giants have driven most market gains over the past 18 months, he notes this trend is now broadening to other sectors and stocks. Wagner points to "undervalued" areas, such as US small caps and international stocks, which began outperforming in the third quarter. However, some volatility may lie ahead as the market enters its third year of a bull run.

"When you start to head into the third, fourth, fifth year of some type of bull market, I think it pays to own more quality," Wagner tells Yahoo Finance. "It pays to own companies that have operating leverage. It pays to own companies that are pricing in elasticity, the long runways of growth, and more importantly, profitability."

Given this outlook, Wagner advises investors to focus on high-quality tech names while balancing their portfolios with high-quality industrials.

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This post was written by Angel Smith