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The bullish case for stocks

Wall Street NYSE Bull
Adam Jeffery | CNBC

U.S. stocks suffering double digit losses Wednesday as low oil prices and blue chip stocks weighed down the market.

The Dow Jones Industrial average dropped 250 points in afternoon trading, with Home Depot, Boeing and Goldman Sachs leading the way.

"Yes, investors are nervous and scared, but there is a huge opportunity to buy U.S. stocks right now." said Neil Hennessy, president and chief investment officer of the Hennessy Funds.

"Volatility doesn't change the facts. The bull market is not over and valuations are reasonable," he said.

Hennessy said the existing $3.5 trillion remaining in fixed income mutual funds is "insane" and urged investors to quickly move into domestic equities.

"Companies are still making a ton of money and cash flow is at an all time high," said Hennessy. "It's not rocket science to see why it makes sense. People just have to shake off their nervousness and jump in."

"The bull market is not over!"

Hennessy's top pick is Iowa-based Casey General Store, a $4.5 billion owner and operator of 1,850 convenience stores and gas stations in 14 states throughout the Midwest.

He also owns Akron, Ohio based Goodyear Tire & Rubber, a leading manufacturer of tires in North America, Europe, the Middle East, Africa, Latin America, and Asia Pacific. The company has 67,000 employees and a market capitalization of $7.4 billion.

Another favorite is Manpower Group, the Milwaukee, Wisconsin based workforce solutions company. The company has a market capitalization of $5.5 billion and operates 3,000 offices in 80 countries.

Hennessy oversees 16 funds including the Hennessy Cornerstone Mid Cap 30, with $975 million in assets under management. The fund holds a four star ranking from Morningstar and a three year return of 10.48 percent.

Hennessy owns the stocks through the mutual fund only. He does not hold them in a personal portfolio, nor does anyone in my family. Hennessy Funds does not have any investment banking relationships with any of the companies mentioned.