Bob Doll, BlackRock's chief equities strategist, likes health-care and technology stocks because the S&P 500 is trading in the middle of his forecasted range.
"We’ve been using 1,100 to 1,250 as a trading range — give or take a few points — and when we get to the lower end of the range, we want to buy them," Doll told CNBC.
"We want to buy beta. We want to buy cyclicality. When we get to the higher end of the range, we want to get more defensive."
Since stocks are trading in the middle of this range, Doll said he does not currently have a lot of conviction. He added that he wanted some health care for defensiveness and some technology for cyclicality.
Among the health-care services companies he likes are Humana and Aetna .
In the technology sector, Doll listed Dell , Symantec and Microsoft among his picks.
Although Doll said he does not foresee the euro falling apart, if it does happen, the S&P could break 1,100 on the downside. If the Europe situation detiorates, he would want more defensive stocks, such as those in health care, in a portfolio.
He added that the U.S. economy is doing okay, with each quarter's GDP stronger than the last this year, and that the earlier "double-dip scare was worrying for nothing."
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Disclosures:
Disclosure information was not available for Bob Doll or his company.
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