The markets greeted the New Year with the worst opening day in 83 years. The Dow Jones Industrial closed Monday’s trading off its lows but still down 276 points. All the major indices were lower for the first trading day of 2016, including the S&P 500 down 1.51 percent and Nasdaq was down more than 2 percent.
But the sell-off does not set the tone for the rest of the year, according to Ernie Cecilia, chief investment officer at Bryn Mawr Trust. “The U.S. still looks very stable and we think that it will grow and we still think it's the best haven for investors and 2016,” he said.
Even so, the investment professional did not go on a buying spree as stocks tanked on Monday. “Our view is the market's fairly valued,” said Cecilia. “So we did some minor buying today, nothing major,” he added.
Get the Latest Market Data and News with the Yahoo Finance App
Sectors Cecilia sees opportunity for in 2016 include healthcare (IYH), defense (ITA), infrastructure, and consumer discretionary (XLY).
Health care
Within the health care sector, Cecilia is specifically looking at “medical technology and less so [on] drug pricing.” He said drugs, particularly drug pricing, is an area he’s avoiding because of the focus it will have this election year.
Defense
Defense is another area Cecilia favors for the new year. “We think that [with] the budget and what's going on the world, some of these companies will benefit by at least some increase in defense spending,” he said.
Infrastructure
Cecilia favors this sector as a result of the budget passed at the end of last year. He expects roads, bridges, and highways to be built from the money allocated in the budget.
Consumer discretionary
“Another area ... that has continued to be a driver the market is a consumer discretionary sector,” said Cecilia. But he warned investors have to be “very selective” within this sector.
More on Yahoo Finance
Japan and Europe will beat the U.S. in 2016: Strategist
