Nuveen’s Saira Malik sees the end of the latest rally approaching, but says there are still bargains for a stock picker.

“Markets are going to become more challenged going forward. We have a couple of rate hikes priced in,” the firm’s chief investment officer for global equities said on Bloomberg TV’s Surveillance on Wednesday. “We have to rely on hard economic data, and as long as that translates into mid-single digits earnings growth, which is what we expect, that should be supportive for the markets. But given the valuations right now, it’s more likely the market takes a breather for the rest of 2021.” 

Nuveen sees opportunities in the medical-technology industries, Malik said. She highlighted medical-equipment maker Zimmer Biomet Holdings Inc., down 4% this year.

“The demographic is aging for this company, that’s in orthopedics,” she said. “That should be positive.”

Other potential winners include small-cap companies, and one of the world’s most-valuable, Inc.

“Small caps have been outperforming and they could break out as interest rates start to increase with inflation,” Malik said. “They can be nimble.”

As for Amazon, with a return of about 4% this year, trailing far behind market benchmarks, “going forward their investments in logistics should be positive,” she said. “This is a company that could have a catch-up trade.” 

--With assistance from Lisa Abramowicz and Tom Keene.

This article was provided by Bloomberg News.