Investors should continue to invest in defensive stocks in strong dividend sectors like telecommunications, technology and pharmaceuticals, said Willem Nabarro, head of European equities for Asia at Exane-BNP Paribas on Tuesday.
"We especially like the sectors where you have very, very good dividend yields because effectively cash is still not getting you anything. Fixed income is not giving you very good returns either," he said.
Telecom operators like KPN, Portugal Telecom, Eutelsat and BT are attractive as they have net yields of more than 7 percent, according to Nabarro.
In the pharmaceutical sector, he said he likes companies like Novartis and Roche that have very high free cash flows and dividend yields of up to 5 percent.
Semiconductor companies like Infineon, STMicroelectronics and Soitec hold the most value in the tech sector, Nabarro told CNBC.