Christopher Zook thinks investors should begin to "nibble" on financial and retailing stocks in this volatile market.
"Financials and retailers, I think, have discounted the majority of the bad news," the chairman and chief investment officer of CAZ Investments told CNBC. He added that CAZ started buying Office Depot recently, as well as Home Depot.
"We don't believe the housing market will bottom until the end of next year at the earliest, but the market's going to start looking past that and say, `When is cash flow going to begin to radically improve?' and when it does, then stock prices are going to go up a lot from here."
Zook suggested that in a long-term, three- to five-year perspective, this may be remembered as a turning point, when smart investors stepped up and bought financials, when others were not willing to.
He cautioned against trying to pick an absolute bottom to the market, but "the risk is certainly a lot less today than it was six to eight weeks ago."