The near-collapse of Fannie Mae and Freddie Mac may signal a turning point for stock markets, provided that conditions in the credit markets improve, Michael Browne, Portfolio Manager from Sofaer Global Research, told CNBC Thursday.
"I suspect that this offers a tremendous buying opportunity for the markets, it's the sort of crash, it's the sort of failure, that you see that tends to mark bottoms," Browne told "Squawk Box Europe" after discussing the future of the government-sponsored enterprises.
He stressed that this was just a hunch and was reluctant to recommend any specific stocks. The fundamentals for the financial sector remain poor and continue to deteriorate, Browne said, but he added that "these are the sort of moments that give you opportunities."
Investors should look out for "stocks that have been starved of liquidity … you look at the banking sector," he added.
Shares of Fannie and Freddie have crashed throughout the week and many market watchers expect the mortgage finance companies to be bailed out by the government at any moment, with some saying that this would wipe out their shareholders.
Other signs that sentiment could be turning is an improvement in the credit markets, Browne said, adding that a further easing of the credit markets could give a clearer indication of upside stock potential.
However, the inflection point could also signal a whole new wave of a bear market, Browne warned, adding buying into stocks now is "a high-risk strategy."