The recent sell-off period has been a “normal development in markets,” and investors should step in to buy, strategist Scott Clemons told CNBC on Wednesday.
“I don’t think it speaks to any underlying fundamental weakness,” Clemons said. “You look at the earnings reports, you look at the strength of the economy, the tide is still coming in for equities.”
“This is a buying opportunity,” he added.
U.S. stocks were up for a second straight day in midday trading on Wednesday. The month has been a volatile one thanks to concern over rising interest rates and trade tensions between the U.S. and China. Slowing earnings growth has also weighed on investors.
The Dow Jones Industrial Average has lost 4.5 percent for October and is on pace for its biggest monthly drop since January 2016. The S&P 500 is down 6.3 percent and could end up with its worst monthly performance since September 2011. Meanwhile, the Nasdaq‘s 8.6 percent drop this month could be its largest monthly pullback since November 2008.
John Stoltzfus, chief investment strategist for Oppenheimer Asset Management, suggested last week’s sell-off would rank among the best buying opportunities for investors in years.
“The overhang remains in terms of China, U.S. trade war and all the worries about the Fed, but we think we get beyond those as we get towards the end of the year,” he told “Power Lunch.”
He likes technology, industrial, consumer discretionary, health care and financial stocks.