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Stocks haven't hit bottom yet: Experts

Recently erratic markets reflect a healthy dip from overvalued peaks rather than fundamental weakness, experts said Wednesday.

"I think there is probably a bit more to go but we've seen the worst of it," said Gene Peroni, senior vice president at Advisors Asset Management, in a CNBC "Power Lunch" interview.

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Major U.S. averages rose more than 1 percent Wednesday, as the S&P 500 teetered on the brink of correction territory on an intraday basis, or 10 percent lower than its most recent highs. The index has shed about 8 percent in the last month.

Traders work on the floor of the New York Stock Exchange.
Getty Images
Traders work on the floor of the New York Stock Exchange.

Before the fall recently, stock growth was "far outstripping value," Peroni said. But he contended the market is now oversold, and any notable catalyst could send stocks through their previous highs reached earlier this year.

Jeffrey Saut, chief investment strategist at Raymond James, also felt markets may have more room to fall before hitting a bottom.

"I think we're in a bottoming process, but I don't think it's complete," he said Wednesday on "Power Lunch."

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He added that the correction had bubbled under the surface for "some time" before the dramatic swings last week.