The Russell 2000 is having its worst week in more than two years, with 39 percent of the small-cap stocks trading in bear market territory. However, that doesn't mean it's time to buy the dip just yet, Credit Suisse's Lori Calvasina told CNBC.
The small-cap index sold off in March and April but had a comeback in May and June.
"We have the exact same problem here right now that we did to start the year, which is that overall the valuations in this space still look terrible, and so I would wait," Calvasina said in an interview on "Closing Bell."
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What's more, when the Russell sold off in the spring, retail investors were still putting money into the space. That's not happening now, she said.
"You've really lost that money flow cushion here," Calvasina said.
She wouldn't look to get back into the broader space until the forward P/E hits 15 or 16 times in line with the longer-term averages. The Russell has been trading at 18, 19 times on a forward P/E multiple, she noted.
However, Todd Salamone of Schaeffer's Investment is bullish on small-cap stocks, which he thinks will continue to be leaders. He also likes the broader market.
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He said there's been a lot of caution, which is breeding the low-volatility environment.
"Even though a lot of people are saying this low volatility is a sign of complacency, we don't see it," he said. "We're seeing a lot of people either move to the sidelines because they are afraid of the low volatility or they are buying portfolio protection."
To find value, Salamone said investors should look for stocks that are displaying strong price action but are also seeing a level of skepticism in "buy," "hold," "sell" ratings and short levels.
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Two names on his radar are Century Aluminum and Chesapeake Lodging.
Despite her bearish view, Calvasina still thinks pockets of opportunity can be found. While there aren't many out there, she thinks the specialty retail space looks undervalued compared with the Russell 2000.
—By CNBC's Michelle Fox, with reporting by CNBC's Seema Mody.
Disclosure: Salamone and his firm do not own Century Aluminum or Chesapeake Lodging.