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STORY: "I like looking at undervalued areas and sectors... I think it makes sense to look away from the 'Mag 7' right here. You look at high quality dividend paying stocks, stocks that are around no matter what the economic cycle is.

You know, think about the stuff you see around your house. Procter & Gamble comes to mind there. So I really like just the high quality, you know, old school Dow names here. You've always got to have exposure when you're building a prudent asset allocation to large cap names. So I wouldn't be overweight, large cap names or underweight them," says McGough who also thinks small capitalization stocks have a place in a portfolio now.

However, he acknowledges with the possibility of a recession these stocks could suffer.