US stocks are a safer bet than their foreign counterparts now that the market has found a bottom, Bob Doll, CIO of global equities at BlackRock, told CNBC.
Doll says that investors can find quality in virtually any sector, but he is focusing on health care, pharmaceuticals, biotechnology and technology.
Health care is "finally showing its defensiveness," and technology firms tend to be "much more conservatively managed having gone through the bursting of the tech bubble in the year 2000," Doll said.
The pharmaceutical sector will get a breather in terms of theDemocrats' health-care reforms as the economic fallout will remain centerstage, Doll said.
(Watch the first section of the Bob Doll interview above, the second section here >>>, and the third section here >>>).
"The health-care initiative, while still there, is just going to be pushed out in time," he added.
Investors should look for "plain, vanilla, higher-quality companies," which will have the advantage in the current environment, Doll said.
Focus on "companies that do not have to rely on the capital markets for financing," he added.
"Look for companies with good free cash flow characteristics, they will gain strength. Leverage is generally working against you," he said.
The US market is only being outperformed by Canada in terms of declines from highs seen last Fall, Doll said. It's the sixth best market on a year-to-date basis, he added.
The Federal Reserve's "aggressive monetary and fiscal policy," along with "higher (earnings) predictability than virtually anywhere else in the world," helps the US to stand out, Doll said.For the Investor: