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A Goldilocks economy for 2016: Strategist

Traders cheered as U.S. stocks traded higher on Tuesday, and the S&P 500 climbed back into positive territory for 2015.

Still, Tuesday's result "doesn't really tell us anything," moving into the new year, said David Spika, a global investment strategist at GuideStone Capital Management. Earnings in 2016 will be modest given a lack of clear catalyst, he said, speaking to CNBC's "Power Lunch."

"Economic growth is likely to continue to be relatively low," he said. "We are looking at next year as something we call the new goldilocks, so not too hot, not too cold, but at a lower level than we are used to."

The strategist suggests that investors make asset allocation decisions based on the long term, rather than planning for just next year.

A trader on the floor of the New York Stock Exchange.
Lucas Jackson | Reuters
A trader on the floor of the New York Stock Exchange.

In the same vein, emerging markets investors may need to look beyond local trends to find the available selective opportunities in 2016, said Heather Loomis Tighe, BlackRock market strategist.

"I think you're going to have to really get under the hood, look for those individual corporations with good earnings growth, and it's going to be an environment where active management will likely pay off there," she said on Tuesday.

Tighe considers the U.S. to be expensive, and she says Mexico has the ability to perform slightly better versus the U.S. in the case of a stronger economy in the next year.

"Mexico is a good place for investment; it's situated in the emerging markets," Tighe said. "When the emerging markets sell off, Mexico tends to sell off with them because it's one of the more liquid names, which you can actually sell."

For 2016, Tighe suggests that investors invest in the infrastructure space, which can offer safer high yields. She suggests investing in areas that "don't depend on economic conditions" and have "stable returns and cash flows."

"Some of those places are outside of equities and fixed-income all together, in the alternative space" she noted. "We are thinking about things like renewable energy, where you can enter into contracts with stable, investment-grade utilities."

While the energy sector has been volatile lately, Nicholas Colas, Convergex chief market strategist, argues that energy stocks have not made new lows on average.

"We think there is one more opportunity as a trade right now," he told CNBC.