Robert Pavlik, chief investment officer for Oaktree Asset Management, told CNBC’s “Power Lunch” that he wouldn’t put new money into the market.
“I believe this market wave is going to crest soon,” Pavlik said. “I think the market has been driven largely by the earnings reports of some of the largest S&P 500 names that have been able to beat their lowered expectations – lowered being the key word.”
He said recent economic reports appear encouraging, but the PPI, CPI and PCE show that inflation is still a concern.
“I’d be very cautious about committing new money (to the market) at these levels,” Pavlik said. “…“I think the market is going to take a look after this earnings season and realize we’re not in this perfect sweet spot, but we’re coming into an economy that’s in a mid-cycle slowdown.”
He said reduced earnings, lower guidance for GDP, continued inflation, weaker housing, weaker manufacturing, weaker business spending and higher oil and gas prices suggest a market pullback is in the offing.
Sean Clark, chief investment officer for Clark Capital Management, remained bullish about the long-term.
“I would stay back and not commit new cash,” Clark said. “The Dow has been up 15 of the last 16 days. Technically, we’re over-bought and it looks like the market is due for some sort of correction. However, if it does correct, I think that would represent a great buying opportunity because we believe the market is going to move higher throughout the rest of this year.”