Market will 'explode to the upside': Pro – CNBC.com

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Gross domestic product only expanded at a 0.1 percent rate for the first quarter, a sharp pullback from the fourth quarter’s 2.6 percent pace.

McDonald thinks the rotation out of momentum names into “tried and true” stocks will continue for the next couple of quarters until there is “clear evidence about the re-acceleration of the U.S. economy.”

There is still value to be found, he said, but “there aren’t big pockets of cheap stocks today.”

So where can investors find that value? For McDonald, it’s in U.S. equities and U.S. high-yield debt.

“High yield is a good example of the canary that is not getting woozy from gases coming out in the coal mine,” he said. “We think that the spread tightness there is justified and likely lead to reasonable returns going forward.”

Grigoli likes consumer staples and tech, specifically larger-cap, high quality names in biotech, software and Internet, which have seen some big corrections.

—By CNBC’s Michelle Fox. CNBC’s Jennet Chin and Reuters contributed to this report.

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Market will 'explode to the upside': Pro – CNBC.com

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