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Power Play: What to avoid in the market

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

A key to profiting from the stock market is knowing what to buy, but you can also make money by knowing what not to buy.

Here's what two Wall Street veterans are avoiding right now.

"Stay away from financials. Investors think they carry too much cash and can't hand it back to shareholders due to regulatory concerns," Nicholas Colas, chief market strategist at ConvergEx Group, told CNBC's "Power Lunch" on Tuesday.

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Another risky area is fixed income. "Bonds look expensive to us versus stocks," said Scott Wren, senior global equity strategist at Wells Fargo Investment Institute.

Financials are higher during trading on Tuesday.