Matrix Asset Advisors' David Katz cautioned investors to slow down with "new money" this year. The markets won't repeat the kind of bull run witnessed in 2013, he said, and investors should adjust their expectations accordingly.
Instead, Katz said they should look for a different kind of momentum: strong business strategies. During an interview on CNBC's "Squawk Box," Katz gave three stock picks that fit into his investment strategy for this year.
As part of the "Squawk Box" Platinum Portfolio challenge, Katz picked medical diagnostic manufacture Hologic, industrial company Eaton and Capital One. He called the latter a financial laggard that could surprise investors this year.
"That's one of the few financials that hasn't done a lot," Katz said. "We're expecting a pick up in business momentum in the back half of this year."
Katz, who owns all three stocks in his fund, said he liked Hologic's new CEO, who was brought in after activist investors took a big stake in the company. And Irish power management conglomerate Eaton represented a play on the global economy, he added.