While U.S. stocks are in a rally mode, investors are better off with cyclical stocks and sector exchange traded funds.

JPMorgan Private Bank Chief Investment Strategist Kate Moore argues that cyclical stocks are the best way to capitalize on a U.S. recovery, CNBC reports.

“We’re still very cyclically biased in all of our portfolios,” Moore said in the article. “And to be fair, there have been quarters this year and months this year that it has not been the best play, but we feel very convinced and confident in the U.S. recovery.”

Specifically, the strategist singles out technology, financial and energy sectors, along with health care stocks.

“We feel very comfortable owning tech as a broad sector, still financials,” Moore said. “We like parts of energy. And on the kind of counterbalance, we’ve been owning a lot of health care.”

In the financial sector, Moore believes that rising interest rates will benefit bank stocks over the long-term. The Financial Select Sector SPDR (NYSEArca: XLF) has fallen behind the broader markets this year, with the SPDR S&P Regional Banking ETF (NYSEArca: KRE) off 2.6% so far this year. [Favored Rising Rates Ideas]

“We think financials are going to do well as rates rise over the next 12 to 18 months, and we still see the environment, as I mentioned, for macro growth and for activity really positive,” Moore said.

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