Despite these losses, USAA Investment Solutions CIO Bernie Williams believes the market is still expensive
"Current conditions feel more like a typical pullback in a market that is too expensive given its underlying fundamentals. Simply put, the expectation for earnings seems to be too high," Williams said.
Two areas Williams sees value in this environment are airlines and cruise lines. His top picks are Southwest Airlines, Carnival and Royal Caribbean.
He likes Southwest Airlines on an oil tailwind. "Seats are filled, but there is some concern regarding competition/prices- but predict these concerns abate a bit this year," Williams said.