- The current pullback is temporary, and the "entire market is fine," says Tony Dwyer, chief market strategist at Canaccord Genuity, a financial services firm.
- In fact, he called it a good buying opportunity, and said there are three sectors to consider: Financials, industrials and tech.
- "Volatility is the buy word for the first half of this year, followed by our ramp toward the target based on earnings," he said. "All of this stuff creates opportunities."
The current pullback in the markets is only temporary and in fact is a good buying opportunity, chief market strategist Tony Dwyer at financial services firm Canaccord Genuity told CNBC on Monday.
"The entire market is fine," Dwyer said on "Fast Money." "Corrections are only natural, normal and healthy until you actually get one," he said. "That's the situation we've been in."
"You get one of these selloffs and it feels like we're going to break down and tank," he said. "During those periods, I want to remind everyone, we're going to have 20 percent earnings growth this year. That's one hell of a multiple compression."
During this pullback, he recommended three sectors to buy on the dip: Financials, industrials and tech.
"In the last three cycles, those are the three sectors that outperformed both cycles when you're flattening the curve to this current degree," he said.
"You want to buy dips," Dwyer said. "Markets are not based on time. They're based on Fed policy."
In January, the analyst accurately predicted another pullback, and also said it was a good buying opportunity.
On Monday, all major indexes fell, sending market watchers into a panic and sparking mass sell-offs. The Dow Jones Industrial Average was down 482 points at its low, closing 335.60 points lower at 24,610.91. The S&P 500 declined 1.4 percent to 2,712.92. And the tech-heavy Nasdaq Composite dropped 1.8 percent to 7,344.24 — its worst day since Feb. 8.
Facebook shares fell after reports surfaced that the tech giant was able to collect data from 50 million user profiles without consent.
But Dwyer said since the indices are market cap-weighted, the biggest stocks have the biggest impact, and called today's market movement a "whoosh."
"You cannot have tech be the solution and the reason that we're going to go and rip to new highs one week and then the next week because of a bad day, we're going to be the reason we break to new lows and keep going lower," he said.
Uncertainty is the new norm, Dwyer said, with developments such as the appointment of new U.S. Federal Reserve chairman Jerome Powell, and anticipation over the number of interest rate hikes this year.
"Volatility is the buy word for the first half of this year, followed by our ramp toward the target based on earnings," he said. "All of this stuff creates opportunities."