stocks

Another, bigger market selloff coming, pro says

Closing Bell Exchange: Next correction
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Closing Bell Exchange: Next correction

U.S. stocks rallied on Friday, with the Dow industrial average and closing at record highs.

While the recent selloff may be in the rearview mirror, there's a bigger one coming within the next three months, Empire Execution president Peter Costa told CNBC Friday.

"The market has been on a tear for over five years. We had a small pullback of 8 percent. I don't think that's enough. I think that the market needs to come back a little bit more than that for a longer duration," Costa said in an interview with "Closing Bell."

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A trader works on the floor of the New York Stock Exchange, Oct. 31, 2014.
Lucas Jackson | Reuters

In fact, he's predicting a selloff of "probably" more than 10 percent.

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Rob Morgan, managing partner and CIO at V2V Associates, agrees another pullback is in the future, but pointed out the market is certainly not anywhere close to bear territory.

"It is definitely an overbought situation right at the moment, but at the same time if people are holding cash and waiting for a really big bear market they better get in now," he said.

In the near term, Morgan believes likely will continue to go up as better-than-expected earnings continue come out.

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