Market analyst who called the pullback now sees an opportunity to buy

  • Market volatility is here to stay for a while, but stocks haven't topped out yet, strategist Tony Dwyer says.
  • U.S. stocks fell sharply on Thursday, with the Dow Jones industrial average entering into correction territory.
  • Dwyer, who called for a pullback on Jan. 25, believes the drop has presented a buying opportunity.

Market volatility is here to stay for a while, but stocks haven't topped out yet, strategist Tony Dwyer told CNBC on Thursday.

U.S. stocks fell sharply on Thursday, with the Dow Jones industrial average entering into correction territory. The blue-chip index closed 1,032.89 points lower at 23,860.46.

Dwyer, who called for a pullback on Jan. 25, believes the drop has presented a buying opportunity.

"I'm promising you it's going to stay more volatile. That's the history of it. But when you look out two, three, 12 months, we're going to be up," the chief market strategist at Canaccord Genuity said in an interview with "Fast Money."

"We have a steep yield curve. We have earnings-per-share that keep going up."

Thursday's drop was the third time the Dow fell greater than 500 points in the last five days.

Dwyer pinned the recent volatility on human nature and too much optimism about the market. Volatility refers to the amount of uncertainty in the size (and direction) of changes in a security's value and is typically measured by the deviation of returns.

The top to the market, however, only comes with an inversion of the yield curve — which occurs when short-term interest rates yield more than longer-term rates — in a credit-driven recession, he said. That's probably about nine to 12 months away, he said, and from there it's another 15 to 24 more months before you enter a recession.

"This is one of those times … that is an opportunity, as long as you stay with a game plan," he said. "You wait for a correction, you buy those areas that do well in this environment."

For Dwyer, that means financials, industrials and information technology.

— CNBC's Fred Imbert contributed to this report.