Ignore the Fear, Buy Stocks Now: CEO
Shares are headed higher and investors should ignore their fear and opt for stocks instead of bonds, Bill Spiropoulos, CEO of CoreStates Capital, told CNBC Tuesday.
"The time to take risk is now, to take advantage of some of the great opportunities that are available in all of our markets worldwide… It's time to buy," Spiropoulos said.
"The trend is clearly higher, there's so much negative sentiment that built over the last three, four months… It's crowded on the sidelines, there's a ton of cash globally," he said.
Spiropoulos favors large-cap multi-national stocks that have strong dividends above the yield on 10-year Treasurys. The 10-year yield closed near 2.7 percent on Monday.
"Anything that you eat, drink or smoke in the next two or three years is going to be a tremendous opportunity," he said.
Investors are currently frightened and "have disengaged their brains," Spiropoulos said, citing the recent rush to safe-haven bonds.
"It's a time to be opportunistic, not fearful," he added.
Spiropoulos expects the yield on 10-year Treasury bonds to rise toward 4 or 5 percent, meaning the price would fall sharply.
Not all investors are as bullish on the stock market. Michael K. Farr, managing director of Farr, Miller & Washington, told CNBC that he recommends caution on buying stocks.