The volatility index (VIX) spiked over 30 percent in the past month, and pros including Russell Napier, market strategist at CLSA, and Kim Caughey, VP and assistant portfolio manager at Fort Pitt Capital Group, expect the swings to continue.
“We think this year is going to be as volatile as last year,” Caughey told CNBC.
Caughey suggested that traders buy on the dips and trim from overweight stocks, in order to “give yourself cash to buy those new stocks later, when the market goes on that downward slide of the rollercoaster.”
In particular, Caughey likes the telecom sector.
In the meantime, Napier warned investors of a "double-dip scare" in the near-term.
“As QE2 [quantitative easing] kicks forward and we run out of time, the market will come off,” he cautioned. “So the next month or 6 weeks, the markets should start coming down.”
- Oil, Currency Volatility to Go On: Strategists
Scorecard—What They Said:
- Caughey's Previous Appearance on CNBC (Mar. 2, 2011)
- Napier's Previous Appearance on CNBC (Sept. 13, 2010)
More Market Intelligence:
- Markets Are 'Overreacting' to Geopolitical Events: Economist
- The Little-Known Market Stat You Must Watch
- Japan a 'Buying Opportunity,' Will Recover: Buffett
CNBC Data Pages:
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Research In Motion
No immediate information was available for Caughey or Napier.