Short-term, buy commodities; but hold those financials for a fourth-quarter recovery. So says King Lip, portfolio manager at Baker Avenue Asset Management.
He explained his investment strategy to CNBC -- and offered his top stock picks.
Basic materials -- especially oil prices -- have slipped; and the U.S. dollar has strengthened. But that's precisely where Lip sees the opportunity.
"Whenever you have such a strong sector pulling back so sharply, you usually get a pretty nice...technical rebound," he said.
Lip is buying Alpha Natural Resources and Arch Coal -- for the short term.