Three stock market sectors appear poised for continued gains, Bessemer Trust CIO Rebecca Patterson said Tuesday: Health care, technology and consumer discretionary.
"One area that I think we should be keeping an eye on is developed Europe," she said. "If you look at valuations, forward-looking price/earnings ratios, they're still quite a bit lower than those in the U.S. and trailing their long-term averages.
"And yes, Europe has just been a poster child of dysfunction, no growth, a lot of political uncertainty, but things are improving, and markets are reacting to what's not priced in. I don't think the improvement's priced in yet."
On CNBC's "Fast Money," Patterson said that it was important to understand what might be behind any increase in interest rates
"If interest rates are rising because we have good growth, and inflation stays muted as it is today, I think that can be a very supportive backdrop for corporations and their spending plans," she said.
"If we see rates going up, not so much because of growth but more because of inflation, then you have to be thinking different about your sectoral tilts," Patterson added. "You might be thinking different about asset allocation broadly, even looking at those unfortunately, unloved, misunderstood hard commodities out there."
Trader disclosure: On May 28, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long AAPL; Joe Terranova is long SPLK; Joe Terranova is long TBT; Joe Terranova is long SWN; Steve Weiss is long C; Steve Weiss is long BAC; Steve Weiss is long F; JJ Kinahan is long AAPL; JJ Kinahan is long BAC; JJ Kinahan is long C; JJ Kinahan is long CSCO; JJ Kinahan is short SBUX; JJ Kinahan is long FB; JJ Kinahan is long MSFT; JJ Kinahan is long F; JJ Kinahan is short SPY on OPTIONS; Simon Baker is long AAPL; Simon Baker is long C; Simon Baker is long CSCO; Simon Baker is long YHOO; Simon Baker is long MSFT; Simon Baker is long GOOG; Simon Baker is long F; Simon Baker is long MRK; Simon Baker is long EXC.
