Last week, it was the Lehman Brothers credit default swaps at the heart of the market's palpatations. The next thing will be Washington Mutual swaps, says Craig Columbus, Advanced Equities Asset Management chief market strategist.
"A lot of what happened last week was the settlement of the Lehman credit default swaps. I mean that was $400 billion of cash that sellers had to come up with to pay claims, basically insurance claims. Now by my count there are six more of those trigger events out there. So the next one would be the Washington Mutual settlement in about two weeks. ... Please get these swaps onto an exchange because this is a big risk to the marketplace."
For investors, he suggested looking at technology and healthcare as possible areas to go value hunting. Oil services was also an area to watch, he said (see his full comments in the video).