Investors should stay in the energy and materials sectors, and stay out of financials, according to Putnam's Kevin Divney.
Divney is also moving cautiously into technology.
"Obviously, some profit-taking would be prudent, given some of the moves we've seen recently," he told CNBC. "But the end demand, the fundamentals of the sectors remain intact."
And that goes for the minus side as well as the plus side.
"Don't get caught up in adding to the financials on some of the weakness we've seen in that sector," he said. "The balance sheets are not totally clean yet, and even if they are, replacing the growth of what the financial sector had done for four to five years is not going to come in 2008."
So what stocks would Divney play with, in the current environment?
"We'd be adding to some of the stocks that are weak, given some of the pre-announcements we saw," he said.
His first example is engineering and construction firm McDermott.
"The long-term fundamental demand story is very good,' he said.
Divney also likes aerospace giant Boeing.
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"It's had some weakness because of some supply-chain disruptions, but I think Boeing is this long-run 'hold' you want to have in your portfolio," he explained.
Divney's firm owns both McDermott and Boeing.