Use the pullback opportunity to sell weaker holdings and wait for the correction to run its full course, said Art Nunes, CIO of Northwest Asset Management.
“The next downside support for the S&P is in the 1,210 to 1,230 area and the upside breakout area would be around 1,320,” Nunes told CNBC.
Nunes said the dollar is in a bear market, and as the greenback continues to weaken, investors should look to invest in assets such as commodities and international fixed income.
In the meantime, Ryan Detrick, chief technical strategist at Schaeffer’s Investment Research, said investors should be siding with the bulls.
In particular, Detrick said he favors the housing sector.
“Since September, housing stocks have done well,” noted Detrick. “We compare housing stocks right now with commercial real estate a year ago—A year ago, no one wanted to own commercial real estate, yet at the end of the year, commercial real estates were one of the best performers.”
“So housing will lead us higher.”
SPDR S&P Homebldrs
iPath DJ-UBS Com Idx
AllianceBernstein Global High Income
Scorecard—What They Said:
- Detrick's Previous Appearance on CNBC (Mar. 7, 2011)
- Nunes' Previous Appearance on CNBC (Mar. 1, 2011)
More Market Intelligence:
- Beware of 'Double-Dip Scare' in Near-Term: Strategist
- Markets Are 'Overreacting' to Geopolitical Events: Economist
- Fears of Another Downturn Overplayed: Jim O'Neill
CNBC Data Pages:
No immediate information was available for Detrick or Nunes.