Recovery Long and Winding, but No Double Dip: Strategist

The European sovereign debt crisis will not dent growth and lead to a double dip recession, said Paul Ramscar, director of wealth management at Financial Partners, adding that the state of the economy will look very different in 12 to 18 months.

"Although this is going to be quite a long stretch in the recovery, the recovery does have legs," Ramscar said on CNBC Thursday, warning that investors should be prepared for a bumpy ride.

"We're in a different place and time than 2008...we are just mopping up some of the effects of bad spending," he pointed out, explaining that the banks are in a better position now, than they were after the collapse of Lehman Brothers.

"There is a degree of leverage (in banks), but it's nowhere near what we had with Lehman."

Banks have to comply with new Basel rules, or a leverage ratio, which puts a cap on the build-up of leverage in the banking system.

Exploiting the Volatility

While Ramscar forecasts that the current market volatility will continue through 2010, he believes this is a good buying opportunity.

"We're adding positions in China. We think that the Chinese market is now reaching a bottom...we are backing a winner," he said, stressing that fears of China's property bubble are overblown.

"If you make a comparison to Dubai for instance, clearly that was a bubble because there was no demand there. The difference in China is - there is a huge demand, (with) almost 2 billion people knocking on the door for their new car, their new home."

China's property prices have continued to surge despite government measures to cool the red-hot sector, with housing prices climbing 12.8 percent in April compared to the same month last year.