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Bumpy ride but still a bull market, say experts

Despite the recent slide in stocks, the bull market will continue and the S&P 500 will end up for the year, market strategist David Donabedian predicted Thursday.

"It's not a feel-good bull market but it is a bull market and there's money to be made," the chief investment officer for Atlantic Trust said in an interview with CNBC's "Power Lunch."

Stocks tumbled Thursday, with the S&P 500 breaking through a key level in midday trading. The major averages are all lower for the week, putting them on pace for a second weekly drop in three weeks.

Trader on the floor of the New York Stock Exchange.
Lucas Jackson | Reuters
Trader on the floor of the New York Stock Exchange.

"The conditions for a bear market simply are not in place," Donabedian said. "The economy continues to grow at a respectable pace. We think recession risk is quite low. We have a positive slope to the yield curve."

Plus, while the Federal Reserve is getting ready to raise interest rates, its policy will be accommodative for some time, he added.

Kristina Hooper, U.S. investment strategist at Allianz Global Investors, is counseling clients to stay fully invested despite the market's bumpy ride.

"We should see a very choppy August with a downward bias but that's OK if you have a long enough time horizon. Just hang in there because we're likely to see improvement in the market by the end of the year," she told "Power Lunch."

She cautioned investors not to worry about the short-term moves.

By not being fully invested, "that's often where they lose the most money … because they often don't get back in when the market starts to recover."

Hooper said the gains, which will likely be slower and choppier going forward, will come when companies finally start reporting revenue growth.

However, some sectors are delivering more gains than others. She particularly likes health care and technology, which have valuations that are "relatively attractive."

"This is the time when we need to be discerning. This is when active management matters and we can't be passively invested in the market," said Hooper.

CNBC's Peter Schacknow contributed to this report.

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