"Housing is going to suck away retail sales, clearly there has been a lot of money spent on the upside with the mortgage equity withdrawal." he said. "Everybody believes that housing has bottomed, but I don't think it has a chance of bottoming right now."
Riley further predicted that the Fed will cut interest rates to below 4%. "We're going to get back to a much slower growth rate and eventually the Fed is going to become concerned."
Also in the segment, Dawn Bennett, head of Bennett Group Financial, said she was a "big fan" of increasing exposure to international markets.
"The economy is slowing down and is flattening so if you still want double-digit growth in your portfolio you have to go over to the international sectors," Bennett said. "One I like in particular is Diageo."
The money manager said she also likes U.S. companies with an international presence and offered another alcoholic beverage maker, Anheuser-Busch, as an example.
"They've had a lot of good news lately and they are trying to do increase their exposure and marketing to international markets and that's how they are going to maintain double-digit growth," she said.