The abrupt end of Wall Street's latest rally proves once again that short-term investing is a hazardous business, according to Sarat Sethi of Douglas C. Lane & Associates. That having been said, there are more short-term opportunities coming.
"Stocks are extremely oversold," he told CNBC. "Some of the things that people were extremely scared of — especially the credit crisis, that came so fast — that is now starting to heal itself; the markets are opening, confidence is coming back."
So where will the opportunities show themselves? "The companies that come out of this better are the ones that were larger, stronger, good balance sheets, global products," he said.
Among sectors, he especially likes consumer staples.
He singled out Procter & Gamble, Coca-Cola, Pepsico, Campbell Soup and General Mills among American companies.