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Power Portfolio: U.S. safety trades

Trader on the floor of the New York Stock Exchange.
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Trader on the floor of the New York Stock Exchange.

U.S. stocks traded mostly higher Monday, lifted by gains in energy, following the terror attacks in Paris over the weekend.

Monday on CNBC's "Power Lunch,"David Nelson, chief strategist at Belpoint, explained why the terrorist events should not be an excuse for investors to liquidate their portfolios.

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"Don't succumb to the temptation of throwing out solid companies due to fear," said Nelson. "Instead, use this market disruption, like any other, as an opportunity to buy the companies missed on the way up."

Nelson said the events in Paris could well change the political landscape, but that doesn't change where and how to invest your money.

According to Nelson the U.S. defense sector offers a great opportunity, since most terrorist events "usually sparks calls for increased military spending."

To this end, Nelson would be a buyer of Raytheon, Lockheed Martin, Boeing and Northrop Grumman right now.

Michael Mussio, portfolio manager with FBB Capital in Bethesda, MD, is also using this opportunity to buy U.S. stocks, calling it a "higher quality" place to put money to work at this moment.

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Mussio said he favors sectors that are less attached to the global slowdown, like health care and consumer discretionary.

His top pick is Washington-based manufacturer, Dahaher. "They are a safe haven in the industrial sector, with minimal cap-ex or commodities exposure," said Mussio.

He also likes biopharmaceutical giant Pfizer, thanks to its existing prescription drug portfolio and new drug pipeline. "This company is a mature cash cow," said Mussio.

Bottom line, both managers favor blue chip domestic stocks which are less attached to the global economic slowdown or can ride the tailwinds of the global fight against terrorism.

CNBC's Jackie O'Sullivan contributed to this article