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‘Beta Play Running Out of Steam’: Analyst

Investors would do well to look at sectors that still have potential margin expansion and are underperforming, Andres Garcia-Amaya of JP Morgan Asset Management said Wednesday.

Reacting to a conversation on CNBC's "Fast Money," Garcia-Amaya questioned the point of profit-taking now.

"If I were to take profits off the table, what would I do with that money? Would I go to bonds? Not really. Would I go to cash? Unless I want to lose the value of my money. Maybe buy a house, but aside from that, equities still offer the best value," he said. "But I do think the beta play is running out of a little bit of steam."

The global market strategist said that investors needed to seek sectors with margin expansion ahead and have underperformed, such as materials, industrials and financials, which he called "a huge leveraged play on housing."

Garcia-Amaya did not see much long-term potential in health care and was wary about home builders.

"It is one sector that I think is more resilient in case we get more headwinds but looking three, five years out, I don't think it has as much of an upside," he said. "I think if I were a homebuilder, this is a great time as a homebuilder/investor. You've got to be cautious a little bit about valuation."

Trader disclosure: On March 27, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Weiss is long BAC; Steve Weiss is long C; Steve Weiss is short BHP; Steve Weiss is short VALE; Steve Weiss is short RIO; Mike Murphy is long AAPL; Mike Murphy is long BAC; Mike Murphy is long C; Mike Murphy is long JCP; Pete Najarian is long AAPL; Pete Najarian is long YHOO; Pete Najarian is long BBRY; Pete Najarian is long BBRY CALLS; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long AMZN; Enis Taner is long GS; Enis Taner is long BIDU CALL SPREAD; Enis Taner is long MSFT; Enis Taner is long SODA CALL FLY; Enis Taner is short YHOO call spread; Enis Taner is short BBY call spread; Enis Taner is long FXE PUTS.

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