That said, he has a couple of stocks he really likes.
One is McDonald's.
"While they have pulled back a bit from their highs late last year, they still have held up better than the overall market," he said. "We really like the fact that they have so much overseas, in Europe, and they've shown an improvement here in the United States in terms of their same-store sales, which is something that's pretty unusual."
James also likes non-cyclicals like Archer Daniels Midland. His list of stocks likely to profit from a bear-market rally also includes quite a few techs: Lockheed Martin , IBM, Hewlett Packard, and Seagate Technologies.
"Seagate's at less than ten times earnings...Hewlett's got a lot of overseas sales," he said.