David Sowerby says investors make the most money when they run against the herd. The chief market analyst of Loomis Sayles says people are gloomy right now -- and that's his buy signal.
"There's some opportunities that are wonderful off these July 15 lows in the market," he told CNBC. "We've seen that those subprime-infected stocks that did not rally off the 'fake' March 10 lows, they have started to move up."
Who's he talking about?
"Names like Pulte (Homes), which I think is the highest-quality homebuilder; Gap, on the retail side, which had a 4 percent margin expansion in their most recent quarter; Monroe Muffler, not a large-cap name, but I think there's wonderful opportunities in small- and mid-cap names, good, consitent cash flow generator," he said.