Omega Advisors Vice Chairman: Healthcare And Technology The Best Sectors To Invest Currently, Avoid Materials And Consumer Staples

Steven Einhorn, Vice Chairman of Omega Advisors, Inc. and former Goldman Sachs Group Inc GS's Partner-In-Charge of the global investment research department and Co-Chairman of the Investment Policy Committee, was on Wall Street Week this Sunday to discuss the sectors that he is bullish and bearish on currently. Here is what he said.

Bullish: Healthcare And Technology

"I think, in the environment we are in, which is... slower growth in terms of inflation and in terms of output in the U.S., you want to try and centre yourself in those areas that have more open ended earnings growth, that are less sensitive to the economic cycle, have pricing flexibility which is difficult to get otherwise, where they have good unit growth," Einhorn said. "So, healthcare as a sector would qualify on both counts of pricing and innovation, generating above average growth and moats, if you will, around entry."

"I think, technology is another sector that should be emphasized again for its open ended earnings opportunity and growth away from the normal up and down of business cycles. So, those two in particular."

Bearish: Materials And Consumer Staples

Einhorn was asked if he would avoid investing in any sector currently. He replied, "I think, right now given the view of the dollar being a strong currency those that are commodity related in their sales, I think, face a headwind. So, the materials sector would be one. I think, on a valuation basis consumer staples have done quite well in the last several years, sell at very elevated multiples. So I'd look to avoid that sector as well."