“Materials have been hit hard, but a lot of that was due to the slowdown in China,” says Wren, who believes China’s growth rate will bottom this summer in the 7.5 percent to 8 percent range. “We’re taking advantage of the sell-off that’s occurred and putting our money to work in the materials sector.”

Financials, Tech, Energy

Still, with all the uncertainty surrounding Europe, Asia, and the U.S. presidential election, it’s easy to see why investment strategists diverge on which direction Wall Street will take, says Kevin Rendino, portfolio manager for Blackrock Basic Value Fund.

“It’ll either be a combination of telecommunications, utilities, healthcare and consumer staples, or it’ll be the other side of the economy that drives the market — financials, information technology, materials, energy and consumer discretionary,” he says. “It’ll be one of those two groups, but it won’t be both.”

The challenge, he says, is figuring out “what the world is going to look like” six months down the road. And, more importantly, how investors will respond.

Historical precedent suggests the market may end higher for the year, giving investors the confidence to assume greater risk in their portfolios .

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