European stocks may have outperformed U.S. stocks year-to-date, but you can still make money here.
Richard Madigan, who oversees more than $1 trillion in assets as chief investment officer for J.P. Morgan Private Bank, tells CNBC's "Power Lunch" he is overweight U.S. equities and all that overweight is in mid-cap stocks.
"80 percent of mid-cap sales are in the U.S.. To a certain extent mid cap stocks offer some shelter from the current dollar-strength storm if you believe the U.S. remains in expansion. We do," Madigan said.
Mega-deals may be grabbing the M&A headlines, but Madigan believes the place to be right now is mid-caps. "Over 90 percent of the activity is in deals of less than $500 million in size. That is also good news for mid-cap," Madigan said.
Mid-cap stocks are up five percent this year.