"The market is trading quite elevated," said Marc Pouey, BofA Merrill Lynch's senior U.S. equity strategist, told. "But I think underneath the surface there are quite a few opportunities out there."
According to Pouey, there are two sectors which will likely be immune to a broader market downturn.
"Two of the glaring areas for me are financials and in health care which are both trading at a discount to the market here," he said.
Pouey sees financials as a growth story.
"We've seen over 10 percent dividend growth in the space. They're also buying back their stock very, very aggressively," added Pouey. "They're rewarding shareholders from that perspective."
He made the case for health care based on the sector's history noting that biotech is a shining area.
BofA's S&P 500 Index year-end price target is 2450; that's four percent below current levels. Pouey's comments came as the index recorded its longest winning streak since 2013.
As for market risks, the biggest issue is the lack of one.
"Near-term, there probably aren't many risks, which is maybe the biggest risk," Pouey said.
Source: CNBC
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