Slow and steady stocks may be just the right investment in this market environment, as long as they are the right ones, CastleArk Management Chief Investment Officer Jerry Castellini said Monday.
That's because the market has reached a point where it is vulnerable to a 10 percent move in either direction, he said.
His picks focus on companies with good long-term fundamentals and reasonable earnings growth, which he said eliminates the need to call next quarter's earnings or a Federal Reserve rate hike. The central bank indicated in its April meeting minutes it may raise rates in June if economic conditions warrant.
Castellini specifically likes General Electric, especially since it rid itself of its financial services arm.
"The movement out of that space should free up probably 30 to 50 percent in appreciation just because of valuation," he said in an interview with CNBC's "Power Lunch."
"When you think of the flexibility that their balance sheet now can handle … and then layer on top of this this fascination with the industrial internet, you have the makings of a wonderful five- to 10-year slow growth, nice yielding, very predictable name."
For David Katz, chief investment officer of Matrix Asset Advisors, balance is key.
"Slow and steady is terrific but don't have too many slow and steady stocks," he told "Power Lunch."
Katz thinks consumer products are the place to be.
In that category, he likes General Mills. It has a good history of making money, has been raising its dividend and could be vulnerable to a takeover, he said.
— CNBC's Brenda Hentschel contributed to this report.
Disclosures: David Katz and Matrix own General Mills. Jerry Castellini and CastleArk own GE.