U.S. stock markets are set to outperform their peers in a time of dwindling global growth, according to one Wall Street strategist, who is urging clients to buy health care stocks that have exposure to the country's health insurance reforms.
"This market isn't feeling stressed at the corners...valuations now leave me feeling very comfortable," Jonathan Golub, chief U.S. market strategist at RBC Capital Markets, told CNBC Wednesday.
"I think that investors underestimate the power of earnings and how wonderful a job corporate management in the U.S. and the rest of the developed world is doing at delivering bottom line."
Golub recommended investors look at health care stocks and brand new technology firms.
He stressed that innovative drug companies and the biotechnology sector should perform well, as would "plays on Obamacare." Obamacare is the colloquial term for the U.S. Affordable Care Act, the law crafted by President Barack Obama to give more Americans access to health insurance.
Golub, who focuses on the U.S. S&P 500 index, rated U.S. equities as "outperformance" in a research note this week. He believes that inflation will remain muted, potentially leading to further accommodative central bank policy.