September is a historically weak month for stocks, but the first U.S. Federal Reserve rate cut in four years meant that markets have mostly bucked the trend so far.
The S & P 500 has risen around 1% month-to-date, and jumped about 8% since the end of June when stocks went through much volatility.
But risks such as the U.S. election, inflation and geopolitical conditions raise the question of what the path ahead will be like for stocks.
"In my view, the banking sector could win ... as should solid growth stocks – at reasonable valuations – in the healthcare and software sectors," he added.
Valuations in the U.S. market look "less demanding" — if you exclude Big Tech, mega-growth stocks, which are dragging up the overall price-to-earnings multiple of the S & P 500, Webber added.
Persons:
David Bianco, Simon Webber, Schroders, Webber
Organizations:
U.S . Federal, Equity, Big Tech, CNBC Pro
Locations:
DWS, U.S