Robert Doll, BlackRock's Chief U.S. Equity Strategist, said he thinks the market may be overestimating the risk of another U.S. recession, placing the probabilty of one at 30 percent.
"My view is the probability of a recession is less than what the markets are suggesting and, therefore, I lean to the 'buy' side," he said in an interview with CNBC.
Doll recommends that investors add cyclical investments to their portfolios. He said his favorite sector is technology, with energy coming in a close second.
The most important issues for investors to consider now are economic growth and whether Europe is able to find a solution to its debtcrisis, he said. While Doll does not think that a solution for Europe's debt problems is possible right now, he does think European leaders will be able to find "Band-Aids" for it.
In addition to uncertainty among investors caused by the U.S. credit-rating downgrade and Europe's debt woes, Doll said corporations are also unsure about what to do with their cash.
Corporations are currently holding the equivalent of 11 percent cash on their balance sheets.
Doll added that companies are using their extra cash to increase their dividends and buy back stock.
"That cash is being used in some ways—not the way we'd like to see it, if you will—that is by bricks and mortar and hiring some workers," he said. "That will come if we avoid a recession."
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Disclosure information was not available for Robert Doll or his company.