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Editors' Pick: Originally published Dec. 28.

The stock market will rise next year as earnings growth expands. John Manley, chief equity strategist with Wells Fargo Funds, expects percentage gains for the major indices will be in the mid-single digits. 

"My guess is that you see earnings begin to pick up because the economy around the world is getting better," he said. "The market can do well.  We probably have one more kick. We haven't seen the exuberance we usually see at the top." 

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Manley said even after the recent interest rate increase by the Federal Open Market Committee, the Federal Reserve isn't trying to stand in the market's way. "Janet Yellen wants to normalize the short end of the yield curve. She still wants to encourage economic growth. She doesn't want to do anything that would make that growth more questionable," he said.

Manley said several sectors look compelling heading into 2016, including selective oil stocks. "I tell people to buy the big international, old seven sister companies, the integrateds right now," said Manley. "Be prepared to wait awhile because 2016 may be too short. But there's value there."

Manley said he sees decent value in telecom and utility stocks, but he's underweighted there because the fundamentals are "iffy." Next year will be one that favors growth stocks, like technology, over value names. He sees opportunities in the business-to-business technology space, as companies rely on technology to increase productivity.

Health care is another area of opportunity while financial stocks will do well thanks to higher income generated from rising interest rates. So what's the biggest risk to the market in 2016?  "It's deflation," said Manley, who pointed to falling commodity prices. But Manley added it's an outside risk to the market, not one he's spending a lot of time worrying about.