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Darst: The markets lack confidence

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

The Federal Reserve's decision to raise interest rates on Wednesday led to a market relief rally, but now all eyes are on the markets as oil continues to plunge well after OPEC's decision to keep its output levels.

U.S. stocks traded at session lows on Friday with the Dow closing more than 350 points under.

"The world is swimming in oil, the world is swimming in cash, the world is swimming in monetary stimulus; what it lacks is business confidence," David Darst, independent investment consultant at Morgan Stanley Wealth Management, told CNBC's "Closing Bell" on Friday.

Attributing the volatility of the market to lack of confidence, Darst finds low oil prices to be "incredibly stimulative."

"We have the uncertainty of an election year; we have 39 percent bears now, the long term average is 30 percent," he said. Despite the bears being out, Darst is pretty bullish about energy stocks.

"This is a good time to be picking up stocks that have good dividend protection in the energy sector," he noted. "Can they maintain the dividend, if so? Then you want to nibble at some of these energy stocks that can keep their dividend."