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How to Weather the Next Selloff: Brown

How to Weather the Next Selloff: Josh Brown
VIDEO1:3101:31
How to Weather the Next Selloff: Josh Brown

The losing trade in a down market will be to flee to cash, Josh Brown of Fusion Analytics said Wednesday.

On CNBC's "Fast Money," he said that chances are that the stock market will decline in April.

"What you really want to start to think about now is, we're in this seasonal pattern; the last three years in a row, the S&P has peaked out in one of the four weeks of April," Brown added. "There are very good reasons for that each time. They all have to do with geopolitics."

When the selloff hits, Brown said that it was important to frame investment options correctly.

"The question is not, 'Can we avoid the next selloff?' We may not be able to," he added. "The question is: How do you behave when it happens?

"The losing bet has been to flee to cash. The correct thing to do has been to pick the sectors that you believe are minimally related to European contagion. Buy those, ride them until the end of the year."

Brown said that was the trade to stake out before any correction.

"That's the bet we would rather make, as opposed to, 'Oh, my god. Another European spring.'"