There will be a short-term pullback after Thanksgiving in stock markets and there is a 50 percent chance that the US economy will double-dip, according to Paul Schatz, president of Heritage Capital.
“We’re going to probably have a short term pull back after Thanksgiving to the first, second week of December, but from there, like most pullbacks we’ve seen, it will be a time to buy, not sell,” Schatz told CNBC Wednesday.
During this buying opportunity, investors should look to large-cap pharmaceuticals which are trading “absolutely wonderfully,” he said, and technology stocks because “until technology falters, it’s going to be one of the leadership groups."
The economy isn’t safe though, he warned, because “there is no real recovery; it’s not sustainable.”
The government has propped the economy with free money, he said, but it will not be able to “stand on its own two feet,” when it has to, in either the first or second quarter of next year, according to Schatz.
Because of this, the US economy has a 50 percent chance of double-dipping, he said, adding that “the government is doing all of the wrong things; that’s the problem.”
-For the full interview, see video clip above
Click here for additional CNBC interview with Paul Schatz