There is uncertainty and volatility in the market and that means investors have to know where to look to withstand the bumps in the road, expert Michael Farr said Tuesday.
With the presidential election looming, central banks weighing on the markets and investors are keeping an eye on what's happening with Deutsche Bank, there has been a shift out of yield stocks and into balance sheet names, he told CNBC's "Closing Bell."
That means cyclicals as well as consumer staples, he said.
"Look for some of those companies that haven't done as well with good, solid balance sheets. I think they're going to be the places to invest and live as you get through year-end," said Farr, president of Farr, Miller & Washington and a CNBC contributor.