are modestly lower, with the Dow bouncing off a triple-digit loss earlier in the session.
Atlantic Trust CIO Dave Donabedian tells CNBC's "Power Lunch" on Tuesday he doesn't see big returns in equities right now.
"The ebullient 'Trump rally' that commenced with the election, is over. We anticipate a lower return profile for stocks in the months ahead (single-digit annualized returns). We are late in the cycle, and absolute valuations are full," Donabedian said.
In this environment, Donabedian is investing in U.S. equities, especially small and mid-caps. "Take profits in some high quality but overvalued names and buy into price weakness."
Donabedian is overweight technology, industrials and energy. All three sectors are lower during trading.