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Fed leading stocks to August lows: Expert

Stocks will remain shaky for now, but sluggishness does not mean investors lack for opportunities, one market watcher said Tuesday.

"I think it's actually a great time to be in the markets," said Mark Okada, chief investment officer at Highland Capital Management, in a CNBC "Closing Bell" interview.

Major U.S. averages closed mixed in up-and-down trading Tuesday, continuing a string of rocky sessions since the Federal Reserve voted to maintain near-zero interest rates this month. The U.S. central bank's easy policy creates short-term headwinds for stocks, but the recent dip opens buying opportunities for long-term, defensive investors, Okada contended.

He said that lower interest rates will pressure corporate earnings and stock prices as confidence in the markets and economy wavers. U.S. stocks could test six-months lows hit in late August before recovering, Okada said.

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Key Fed officials including Chair Janet Yellen have recently indicated that the central bank could start the process of normalizing policy later this year. Okada believes that tightening will encourage faster earnings growth and, ultimately, rising wages.

In the meantime, Okada said investors can look at companies whose stocks have plunged despite little change in fundamentals.

"Over a long period of time, I think those are great opportunities," he said.

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