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Power Play: Avoid sectors with potential risks

Traders work on the floor of the New York Stock Exchange
Andrew Renneisen | Getty Images
Traders work on the floor of the New York Stock Exchange

Despite the swings between gains and losses today, market volatility has come down over the past month.

Jeff Carbone, co-founder and managing partner at Cornerstone Financial Partners, tells CNBC's "Power Lunch" on Wednesday now is not the time for investors to be complacent.

"I think we still have more volatility ahead this year. We may re-test the February lows again this year before going positive," Carbone said.

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He is also telling investors not to chase some of the hot sectors this year, such as utilities, which is up 6 percent year-to-date.

"I don't like utilities because I think they will go back down when it becomes more clear that we are not going into recession," Carbone said.

One sector Carbone likes right now is health care, which is up 3 percent over the past month.

"Health care is oversold, although biotech still has regulatory issues and/or a Clinton presidency is holding it back," Carbone said.

Utilities and health care are higher during trading.