Dan Skelly, head of equity model portfolio solutions at Morgan Stanley Wealth Management, tells CNBC's "Power Lunch" he sees limited upside near-term.
"Continued volatility is likely, given challenges to the global economic outlook (such as emerging markets' economic slowdown and China's ongoing transition) as well as political risks (notably Brexit's impact on UK consumer confidence, Abe re-election in Japan, and the U.S. election," Skelly said.
He believes this uncertainty will create stock specific opportunities.
"From an equity perspective, we favor 'sustainable growth' ideas with catalysts (not pure-play momentum stocks), and idiosyncratic earnings drivers," Skelly said.
One on his top picks is the retailer L Brands. It is lower during trading and is down 32 percent year-to-date.