Is the U.S. economy in a recession? Heading for a recession? "No" on both counts, says Frank Cappiello, the chairman and managing director of Montgomery Brothers, Cappiello. And he thinks it's time to think about buying stocks.

"It's certainly a slowdown, and it may be a recession in the financials -- but there are no indications that we're about to enter a recession," he told CNBC.

Recommendations:

He advises holding off on buying financials, preferring oil companies and retailers.

"We like Wal-Mart

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[WMT  Loading...      (%)   ] there, and Costco

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[COST  Loading...      (%)   ]," he said.  "Take your pick, either one."

He's impressed by Wal-Mart's April sales figures, which beat analysts' expectations.

For foreign investments, he points to Brazil.

"Brazil has changed in the past three years,' he said.  "People don't realize that, effectively, we have a whole new country in a big area of Latin America."

Disclosures:

Disclosure information for Frank Cappiello was not immediately available.

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