Wells Fargo strategist: Bet on energy in 2016

The energy and the pharmaceutical sectors have been under fire recently, but that's no reason for investors to skip these stocks for their 2016 playbooks, says John Manley, chief equity strategist at Wells Fargo Funds Management.

In the energy market, the best stocks are in the integrated sector, Manley told CNBC's "Power Lunch" on Tuesday.

"There are some pretty high quality stocks focused on the big integrated, the old seven-sisters type," he said. "You have downstream operations that offset a lot of the problems, you have cash flow, which helps to maintain the dividend, and I think that's a pretty good story."

All of the S&P sectors closed positive on Tuesday, led by consumer staples and energy, which were up 1.23 percent and 1.22 percent.

Manley suggests that investors should invest in the general pharmaceutical and biotech stocks.

"My experience has been when high-growth, high-multiple sectors get hit because of valuations... they usually don't stay down," Manley noted about the health care sector.

He said he would also invest in technology because he expects the tech sector will thrive through a business-to-business increase. He forecasts that higher wage demands will drive corporations to invest in more technology.

"I think that the people who run corporations today are fundamentally different than the people who ran them 50 years ago," he noted. "They're not going to give away the farm, and I think that means they invest in more technology to make their people more productive."