Nearly Every Stock is Cheap: Strategist

Long-term investors should leave the sidelines and pick up stocks now, as shares in all companies look very cheap, Bill Knapp, Investment Strategist at MainStay Investments told CNBC.

"For the long-term investor I think this will be marked in the years to come as a very good buying opportunity," Knapp, whose MainStay Investments is overweight towards equity and especially large caps, said.

The valuations seen currently, in terms of price earnings ratios and price to book value, haven't been as low since the early 80s and mid-70s, he noted.

"When you look at the markets in general pretty much everything is very cheap right now, both domestically and outside the US," Knapp said.

Dismal earnings have been priced into the market, as price-to-earnings ratios around the world are very low, he added, saying that markets will start discounting earnings at least until the second half of 2009, after which a "normalization" period will begin.

A typical downturn in the economy lasts six to 12 months, Knapp said, and the current period suggests the recovery will start in the middle of next year.