Power Play: Betting on the housing recovery

Shoppers walk towards a Home Depot store in Silver Spring, Maryland.
Jewel Samad | AFP | Getty Images

Despite the concerns about global growth, one veteran market strategist believes the U.S. economy is intact and the housing market will take off.

"We're in the early stages of this housing recovery. We will get back to early 2000 levels," Jerry Castellini, President and CIO of CastleArk Management, told CNBC's "Power Lunch" on Tuesday.

Castellini said one way to bet on the housing recovery is to buy Home Depot stock. Home Depot was down more than one percent on Tuesday, but has surged more than 33 percent in the past year.

Lending support to Castellini's view is news from online real estate brokerage Redfin, indicating buyer traffic surged dramatically in the past two weeks.

"People are fully employed. They will take advantage of low interest rates," Castellini said.