The stock market has gotten expensive and investors need to be careful, experts told CNBC on Monday.

"Stocks are very fully valued, and I think you have to really make sure you know what you own and why you own it because when this music stops, and it will stop, you better have a seat for you and your clients," Michael Farr, president of Farr, Miller & Washington, said in an interview with "Closing Bell."

Stocks ran up after President Donald Trump's victory in November, but have been trading in a narrow range recently.

Trader Kenny Polcari, director at O'Neil Securities, said stocks have been resilient lately but may be headed for a correction.

He sees it possibly happening right after tax season.

"It's a seasonality thing. If you look back the last four or five years, after tax day the market kind of pulls itself back, corrects a little bit, churns before it starts to move again," Polcari told "Closing Bell."

Farr believes there is still value to be found in the market, and points out that "this has been the most called-for market top that just won't happen that I've seen in a long time."

He would stay away highfliers. Instead, he likes energy and consumer staples, specifically Sprouts Farmers Market and CVS.

Disclaimer

Disclosures: Farr, his family and firm own SFM an CVS

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