Economic ‘Potholes’ Ahead: Godfrey

Several factors could cause a pullback in the stock market, as well as buying opportunities, Gemma Godfrey of Brooks Macdonald Asset Management said Friday.

Slowing growth in Germany, banking scandal in Italy and corruption allegations in Spain appears to be increasing risk, she said on CNBC's "Fast Money."

"Market elation has been a little bit too early, moved a little bit too far, and there are these potholes that actually could cause markets to stumble, at least in the shorter term," she said. "Markets do not like uncertainty, and the longer this continues, the longer the uncertainty is over the markets, the more likely is it will have a pullback."

Godfrey also cited a statistic noting that the U.S. stock market is approaching 500 days since a 10 percent-plus correction, which she said was the tenth-longest time in history that such a bull run has occurred.

"And it means when we're looking at where valuations are , they're no longer cheap with respect to the U.S. market, growth isn't coming through as we thought it was going to come through, and you've got this level of uncertainty, meaning that it is more likely that these momentum followers – for example, the hedge funds are buying into financials – that they're going to start to stumble," she said.

But the picture wasn't all dire.

"I do think that that means if we do see a correction, it could be muted because it'll be a fantastic buying opportunity for those investors that are looking to rotate back into risk assets because over long-term, we're actually more bullish about equities," Godfrey said.

Low interest rates, credit spreads at multiyear lows and the prospects of a return to growth could still bode well for equities, she added.

What the market needed was confidence and the return of depositors to put their money into European banks, something that hasn't happened sufficiently.

"All of that gives us slight cause for concern, meaning that we're growing more cautious shorter-term, although, obviously, more bullish longer-term," she said.

Trader disclosure: On Feb. 8, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Stephen Weiss is long QCOM; Stephen Weiss is long TBF; Stephen Weiss is long CNX; Stephen Weiss is long WLT; Jon Najarian is short AAPL Puts; Jon Najarian is long BBRY LONG CALL SPREADS; Jon Najarian is long GOOG CALL SPREADS; Jon Najarian is long ATVI ; Jon Najarian is short CSTR puts; Jon Najarian is long MCD, SHORT CALLS; Jon Najarian is long MPEL; Jon Najarian is long MPEL CALLS; Jon Najarian is long AVGO; Jon Najarian is long AVGO CALLS; Josh Brown is long AAPL; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long MCD.