Stick With 'Disruptive' Tech, Shale Stocks Into Year-End Says JP Morgan Strategist

Markets may not move much heading into year-end, but if the opportunity does arise then investors would do well to pick up some "disruptive" technology and shale-focused energy stocks, said Nadia Lovell, U.S. equity strategist at JP Morgan Private Bank (JPM) - Get Report . "We continue to expect range-bound markets into year-end as expectations for a profit recovery starting in the fourth quarter are offset by potential election noise and concerns over Fed action," said Lovell. At current levels, she said she favors a more selective approach with a preference for leaders in the e-commerce and cloud computing spaces. She is also constructive on shale-focused energy producers, but not because she is forecasting a colder winter on the horizon. Lovell sees a rebound in energy prices on the horizon and is focusing on the more profitable geographies like the Permian Basin that "can operate in a low oil environment." Lovell likes the consumer discretionary sector as well, but more because of easy comparisons to last year's earnings than due to expectations for a particularly merry selling season for retailers. Finally, Lovell said she is neutral on financials, advising clients to sell into any rally associated with a potential December Fed hike.