Funds, Not Individual Stocks, The Way to Go Now: UBS Exec

The bond market right now is comparable to the stock market in 1987, when equities were overvalued, except now things are reversed, with stocks undervalued and bonds in a possible bubble.

"Pay attention to the bond market," Joe LeFeria Founder of LaFerla Group, UBS Financial Services told CNBC's "The Strategy Session" on Thursday.

LaFeria doesn't believe in buying individual stocks and bonds—"that's not the way to make money, talent is the difference maker."

"We prefer to go out and hire the best fund managers and build a portfolio," he said, adding, "we use ETFs (exchange traded funds), as well, to strategically support the active fund manager."

In addition, "we are slowly reducing our bond commitment, while raising our emerging market committment on both the bond side and the equity side," LaFeria said.

Our global portfolio is currently set to "positive 75: we own up to 75 percent in equity mutual funds and ETFs, 10 percent in bonds and 15 percent in cash," he said, adding, "we can own up to 80 percent in equity mutual funds and ETFs and up to 80 percent in fixed income mutual funds and ETF's."

This advantage allows us the flexibility without being pigeonholed in any market, LaFeria concluded.