Wells Capital Management's Jim Paulsen said Tuesday he has become more positive on stocks as he anticipates more attractive valuations and a buying opportunity on a spike in volatility.
Stocks were pointing to open higher on Monday as investors breathed a sigh of relief over China GDP data. But even with the S&P 500 poised for an open above 1,900, Paulsen said he thinks another leg downward is coming.
"I'd be buying, putting cash back to work here below 1,900," he told CNBC's "Squawk Box." "I think we're still going to break below those August lows and probably break 1,800, scare everyone that we're in recession, convince everyone that we're in a bear market, but I don't think we are."