GO
Loading...

Positioning for market’s event risks: Pro

There are plenty of winning ways to play the current market, UBS Managing Director Rob Sechan said Friday.

"We like the U.S. market because of the quality, transparency and consistency of the growth that we see here," he said.

On CNBC's "Fast Money," Sechan said that he was focused on cyclical sectors, such as technology, financial and industrial.

"Technology trades at a discount, and yet there's all these positive demographic forces in mobility, cloud computing, the changing of consumer behavior," he said.

(Read more: Top 3 tech plays? They're still in China: Glen Kacher)

Financials, too, stood to gain in the current environment, Sechan added.

"People are worried that the rate change is going to impact financials negatively, potentially, because of the net-interest float that they earn on their loans. I think it's absolutely opposite," he said. "Activity is going to pick up. Capital market activity is going to pick up.

"Let's remember that financials are high-beta investments, and they'll participate in that. Lending demand will pick up, so there's a lot of excitement there."

Sechan added that he favored small caps.

(Read more: Now, invest based on the facts: Stephen Weiss)

"From a capitalization standpoint, I think we favor small vs. large," he said. "Small-cap companies are more exposed to the growth that we see in the U.S., and so we want to maintain our exposure there.

"When we look at growth vs. value, growth has historical traded at a meaningful premium, 37 percent of value. Now it's trading at a 26 percent premium. In a slow-growth environment, investors are going to pay up for growth."

Sechan added that there was plenty of opportunity around.

(Read more: 'We're 100 percent out of Apple': Pro)

"So, there is a lot to do in this market," he said. "And I would encourage, as event-risk becomes more prevalent, investors to have conversations about, 'How do I want to be positioned if something really happened short-term so that they can take advantage of it?'"

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

Trader disclosure: On Sept. 20, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Stephen Weiss is long calls AAPL; Stephen Weiss is long FB; Stephen Weiss is short JCP; Josh Brown is long AAPL; Josh Brown is long DXJ; Josh Brown is long DDD; Josh Brown is long SSYS; Josh Brown is long VGK; Pete Najarian is long calls AAPL; Pete Najarian is long calls C; Pete Najarian is long calls JPM; Pete Najarian is long calls INTC; Pete Najarian is long calls YHOO; Pete Najarian is long calls BBRY; Pete Najarian is long calls MSFT; Pete Najarian is long SBUX; Pete Najarian is long FB.

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET