A good bull just can't be kept down. On Friday the surged by as much as 300 points, with buyers coming out of the woodwork on Wall Street after new data showed the domestic economy may not be as weak as previously feared.
Specifically, investors were soothed to learn that U.S. housing starts and permits rose in September; also the Thomson Reuters/University of Michigan preliminary October reading on the overall index on exceeded expectations.
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Also, oilfield services giant Schlumberger posted a third-quarter profit that beat estimates.
Pros took these developments as signs the economic recovery remained intact, and that fundamentals would ultimately drive the market.
Portfolio manager Lamar Villere of Villere & Co. said on CNBC's "Street Signs" that he sees so much opportunity in the market that during the sharp decline earlier in the week he took money out of Treasurys and put it to work in favorite stocks.
"This has been a period of very strong buying for us," Villere said. "There's a lot to be positive about. There are a lot of great values out there."
Villere added that one of those values is Sanchez Energy. "It's down 50 percent off its highs, and they have great assets," he said. Villere also said that he had spent time with the management team and had developed great confidence in their leadership. All told, "this is a chance to buy a great asset on sale," he said.
Peter Andersen of Congress Wealth Management is a little more cautious, but he also believes the selloff has created values in the market that are just too attractive to pass up.
He's bullish on Equinix. "It's trying to convert to a REIT; and the company gave a strong sign yesterday (that the conversion may be successful). Andersen said two other companies in the same space have already converted to REIT status; therefore he thinks it's 99 percent likely that Equinix will receive approval. "And once it becomes a REIT, I think the stock will be undervalued between 20-35 percent."
Villere added that, in this market, investors should be more like his mother-in-law. "She's a ninja shopper. She knows what she wants and she waits for it to fall to the right price." Then she buys.
Disclosure: Lamar Villere owns Sanchez Energy personally and in his fund. Peter Andersen owns Equinix personally and in his fund.