Nuveen Asset Management Chief Equity Strategist Bob Doll says he does not like energy stocks now but does like the beneficiaries of lower energy prices, for example, airlines.

SHOWS: NEW YORK, USA (JANUARY 8, 2015) (REUTERS - ACCESS ALL)

1. NUVEEN ASSET MANAGEMENT, CHIEF EQUITY STRATEGIST, BOB DOLL, SAYING:

JOURNALIST ASKING BOB DOLL: 'In terms of growth you are looking for the S&P to hit 2200 about an 8 percent increase, are there more risks to the upside or downside to that 8 percent call?'

DOLL: 'Great question, I think the risks are relatively even, the upside would be better PEs which with a rising dollar and falling trade in federal budget deficits is often the case. The downside risks are the blacker holes related to deflation and the dislocation from the price of oil that are upon us now and what is causing the market to have a rough start to 2015.'

JOURNALIST: 'And even with those oil prices falling you do not like energy stocks?'

DOLL: 'Correct, there will come a time Rhonda but my view is the estimate cuts for energy have just begun. The stock has obviously been hit. They will have nice reflex rallies but I would rather play the beneficiaries of lower energy prices, airlines, selected companies and the like.'

JOURNALIST: 'And in terms of specific sectors you are overweight a couple, telecom, technology, healthcare, what are you seeing broadly in those sectors?'

DOLL: 'Earnings mainly the story and prices that are fairly reasonable, technology in particular, healthcare the prices have moved up but fundamentals remain pretty good in the first two, telecom is more a defensive call.'

JOURNALIST: 'Beyond energy you do not like utilities, you don't like materials, is that commodity related? What is the story behind that?'

DOLL: 'That is exactly right; I think we are at a point where global growth is good but not great led by the U.S. That is not an environment we are going to have commodity prices moving up a lot. That is what is necessary for energy and material stocks to do well.'

JOURNALIST: 'You do see the Fed raising interest rates; of course that is a broad call. You see about a 25 basis point move mid-way through the year. How is the market going to react ahead of that? It is a very different Fed than the last time they raised rates. We have a Fed that communicates and we have had also this unprecedented error in Federal Reserve policy.'

DOLL: 'Have we ever? It is interesting to watch, I think the Fed is going to over communicate, because they are very nervous that they are going to get it right. And so I think all the headlines and consternation that all of us have placed on the Fed make that communication all the more important. But I think it will be a yawn when it finally happens because who isn't expecting the Fed to begin raising rates.'

JOURNALIST: 'But will that really contribute to stock market volatility? You see volatility peaking up this year, is it from the Fed or would it be from something else?'

DOLL: 'The pickup in volatility really is from very low volatility which we think is unsustainable, caused by this massive liquidity from all over the planet led by the Fed. That is less the case now, then you layer on top of that the deflation uncertainties around the world and I think you are just going to create a little more volatility.'