Oaktree Asset Management's Robert Pavlik warns investors not to be misled by what appear to be attractive valuations on stocks.
"The problem I have with valuation is that I can't trust analysts' estimates," he told CNBC. "Analysts' estimates are still too high: A stock comes down from 30 to 10; it doesn't make it more valuable, it doesn't show more valuation, it just tells you that the stock costs less."
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Pavlik is also very careful about the stocks he picks for clients who need to withdraw their money within five years.
On that list are Disney, McDonald's, Procter & Gamble, Colgate-Palmolive, ExxonMobil, Bank of America, Goldman Sachs, Johnson & Johnson , Caterpillar, United Technologies, IBM, Apple, and Hewlett-Packard.
