Power Play: Investment Opportunities in 2016

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A strong jobs report on Friday is raising the odds of a December interest rate hike. But a higher interest rate environment in the U.S., while Europe is easing may indicate better investment opportunities overseas in 2016.

UBS Wealth Management Senior Investment Strategist Stephen Freedman tells CNBC's "Power Lunch" we are near full market valuation here.

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"While we see moderate upside for U.S. stocks, we see better opportunities in the eurozone and Japan as earnings in those markets are likely to outgrow U.S. earnings," Freedman said.

Domestically, Freedman likes technology and energy.

"We expect oil prices to stabilize and partially recover in 2016, and forecast USD 60/bbl (WTI) in 12 months' time. We expect oil production outside of OPEC to contract by at least 0.3 million barrels per day (mbpd) in 2016. Meanwhile, oil demand growth should stay robust as drivers change habits in response to cheap fuel," Freedman said.

Technology is higher during trading, but energy is lower following a drop in oil prices. The Nikkei and the pan-European STOXX 600 closed lower on Friday.