Short-term, buy commodities; but hold those financials for a fourth-quarter recovery. So says King Lip, portfolio manager at Baker Avenue Asset Management.
He explained his investment strategy to CNBC -- and offered his top stock picks.
Basic materials -- especially oil prices -- have slipped; and the U.S. dollar has strengthened. But that's precisely where Lip sees the opportunity.
"Whenever you have such a strong sector pulling back so sharply, you usually get a pretty nice...technical rebound," he said.
Lip is buying Alpha Natural Resources and Arch Coal -- for the short term.
But he says the U.S. economy will slowly but surely rebound. So he advises investors to hold on to Bank of America, JPMorgan, "the Citigroups of the world," and even Merrill Lynch.
Disclosure information was not available for Lip or his company and fund.