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Greek Debt, Rising Volatility & Rising Rates... Oh My

Traders work on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters
Traders work on the floor of the New York Stock Exchange.

The volatility index seeing its biggest one-day move year-to-date; jumping more than 22 percent on Monday.

The Greek Debt Crisis certainly adding to the volatility of this market and the uncertainty over rising rates also making an impact.

Greece crisis deepens: Banks closed, pleas for help

Brad Friedlander is a portfolio manager with Angel Oak Capital Advisors. He says he expects the uncertainty to continue, even as the Fed likely makes its first move this year.

Friedlander says "traditional bonds have had lackluster performance and are feeling the pain of daily interest rate fluctuations."

Friedlander also says "bond investors should carry through this volatility by focusing on off the beaten path opportunities in structured credit, which also possess the benefit of being floating rate (poised for Fed hikes)."

As for equities, despite the volatility, investors are seeing some opportunity. Patrick Kaser is a portfolio manager with Brandywine Global.

Kaser says he "still sees opportunities is select undervalued stocks and sectors." Sectors he favors in this environment include, financials, energy and certain cyclical industries like airlines and autos.

Two stock picks from the auto sector that Kaser likes are General Motors and Toyota Motors.

General Motors is down about 4% year-to-date.

Toyota is up just over 6% this year.