David Sowerby, of Loomis Sayles & Co, says more indicators are pointing toward a market bottom.
“You want to avoid the capitulation trade, which is selling very near the very bottom of a classic bear market, and you want to stick to high free-cash-flow-generating companies."
He recommends investors buy select financials and small to mid-cap stocks. His favorite picks are US Bancorp , Rollins and Interactive Data Corp .
- CNBC.com Video: The Sowerby Interview (5 mins, 34 secs)
Disclosure information was not available for Sowerby or for his company.