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Power Play: This is not a market breakout

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Stocks have given up their gains, but not before the Dow and S&P 500 set new intraday highs. Even though equities are in record territory, NFJ Investment Group Portfolio Manager Burns McKinney tells CNBC's "Power Lunch" on Wednesday he doesn't think this is the start of a rapid breakout for the S&P 500.

"Rather than a sprinter blowing through the finish line, we expect it to look more like a marathoner, slowly finishing the race. Over the next twelve months, we would probably expect real returns, above inflation, of 2-4 percent, based on currently stretched valuations," McKinney said.

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While this is not great, McKinney points out the returns are still better than what you can get with fixed income.

His favorite sectors now are energy, financials, telecom and technology, with Quest Diagnostics a top stock pick.

Energy, financials and Quest are down during trading, while telecom and technology are higher.