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Bottoming Doesn't = Bullish: Strategist

Although Charlie Morris, head of absolute return at HSBC Global Asset Management, said both the emerging market sector and the financial sector have bottomed, he isn't bullish yet.

The green light for investing will only occur after the defensive sector has hit its final lows, Morris told CNBC.

"I don't think we're going into a bull market yet," Morris said. "I do think that elements of it have bottomed, in particular, I think the financial sector in the last month. A lot of the stocks have put in their lows."

Emerging markets put in their lows last October, he added.

"The best parts of the stock market are yet to bottom," Morris said, referring to high-quality stocks, big dividend payers and large companies. "They're going down for the next year or so."

"People have been crowding into these areas, and they're not exiting, panicking, trying to keep up with the stock market, and it's those areas which have got some way to go down."

"Time and a decrease in volatility" are just two things that will convince investors to return to the markets, according to Morris. "We are looking for more stability and breadth in the markets and those things are not apparent by any means."

You don't have to hurry into the market because stocks, especially in emerging markets and the financials sector, are now already overbought, Morris told "Worldwide Exchange." "When the big defensive stocks make their final lows, that will be the green light to by everything."

"The semiconductors are getting really interesting because they spent 10 years in the doghouse and they are extremely cheap. And so I think, as a long-term investment, semiconductors are going to be compelling," he said.

He likes UK tech companies like Infineon.