With central bank policies set to diverge, volatility, credit spreads and market overreactions will continue to distract investors in 2016. Nevertheless, that does not spell recession, said Omar Aguilar, chief investment officer for equities at Charles Schwab Investment Management. 'We are back to a high volatility and high risk aversion environment,' said Aguilar. 'The risk to the economy is very low though. I think we will see a lot of fear, but I do think this is only a realization that we are in a slow growth environment.' The currency war being fought by the world’s central banks is creating winners and losers in the U.S. stock market. Aguilar said technology stocks will be in the best position to outperform, primarily because of their international business. Financial stocks will also perform well, in his opinion, because of the move up in U.S. interest rates.