Charles Crane, managing member of Scotsman Capital Management, told CNBC’s “Squawk on the Street” that investors should look past current market turmoil and go long in solid stocks.
“Market turbulence such as we’ve been witnessing for the past several weeks is typically characterized by a lot of anxiety, often born of some fundamental events such as the sub-prime worries that are cascading through the economy,” Crane said Wednesday. “In those times, traders tend to over-react, creating opportunities for investors who can look out a year, two years or even farther to establish or add to positions -- and admittedly maybe suffer through some near-term volatility -- but build the foundation for long-term returns.”
He likes Citigroup, JP Morgan and WellsFargo .
“Assuming (Citigroup) can then follow through and build on that current momentum, then I think you’re going to see a stock that could deliver -- not double in the next 12 months -- but certainly solid returns,” he said. “Plus, it’s got a decent dividend yield.”