"The U.S., while still the strongest economy, is starting to slow at the margin," said Alan Gayle, senior investment strategist at RidgeWorth Investments. "The news out of Europe is getting better, particularly with quantitative easing, so we've been moving money into Europe."
Gayle said he avoided Europe last year, but things have changed in 2015.
As for sectors, technology tops Gayle's list. "We also think the industrials space is going to do better this year and we are retaining a pro-cyclical bias."
Next month, Europe will embark on a massive $1.2 trillion bond stimulus program, in an attempt to lower borrowing costs and spur hiring. Europe has also been grappling with deflationary worries, which quantitative easing will attempt to fix.
Back in the U.S., inflation has taken center stage, with the consumer price index on the decline as crude prices continue to remain low. In a speech on Wednesday before the House Financial Services Committee, Federal Reserve Chair Janet Yellen underscored the importance of inflation as criteria for raising short-term interest rates, which have remained near zero since 2008, saying rates won't rise until the central bank is confident that inflation reaches its 2% target.
"We're not worried about deflation," Gayle said. "The data we will get on the CPI on Thursday will reflect the weakness in oil prices, but that is likely to be temporary. I think the Fed is trying to remind people it has a dual mandate, partly to keep prices higher."
Falling consumer prices in the U.S. doesn't worry Gayle. He's watching the financial sectors. "There's an interesting story coming out of financials, which is going to be positive," he said. "I think the financials have had a hard time taking off, but both financials and energy stocks are something to watch, depending on how oil settles out."