High-quality, low-beta stocks are the place to be heading into 2017 even if they do seem a bit unloved in the middle of the Trump rally, said Harin de Silva, president of Analytic Investors. "IT stocks used to be considered high-risk, high-beta but they have increasingly become almost a consumer staple. If you talk to your kids they will tell you that their iPhone is no longer discretionary. It's a staple and you see that in the beta of these stocks." On the flip side, de Silva is shorting a number of the high-beta financial and energy stocks that have run up since Election Day. "We think they are incredibly overpriced," said de Silva. "The weighted average PE of our short portfolio is over 25 so it presents a great opportunity to participate in the market pullback that is going to happen in the coming year."

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