U.S. stocks remained in the red Thursday afternoon, pressured by a steep drop in oil prices and new data about the labor market and speeches from several members of the Federal Reserve.
Neil Hennessy is president, chief investment officer and portfolio manager at the Hennessy Funds, overseeing $6.6 billion in managed assets including a five star ranked mid cap fund.
Thursday on CNBC's "Power Lunch," Hennessy said the steep slide was merely the bull market taking a much needed breather.
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"The market is in good shape," said Hennessy. "This is just a sideways correction."
Hennessy said the selloff was "nothing to be scared about" because it gives investors a chance to go bargain hunting.
"This is the time to get out of bonds, and into equities," said Hennessy. "Things are not as good as they once were, but they are still good. There is a lot more value in the marketplace than there is speculation."
One stock on Hennessy's radar now is American sportswear and athletic footwear retailer, Foot Locker, which pays a one dollar dividend.
Hennessy also likes Masco Corporation, a leading maker of products for the home improvement and new home construction markets, and food company, Pilgrim's Pride, the largest chicken producer in the U.S, and Puerto Rico.
Hennessy Cornerstone Mid Cap 30 Fund has returned 16.44 percent over the past year and 27.26 percent over the past five years. It holds a five star ranking from Morningstar.