Oaktree Asset Management's Robert Pavlik warns investors not to be misled by what appear to be attractive valuations on stocks.
"The problem I have with valuation is that I can't trust analysts' estimates," he told CNBC. "Analysts' estimates are still too high: A stock comes down from 30 to 10; it doesn't make it more valuable, it doesn't show more valuation, it just tells you that the stock costs less."
Pavlik is also very careful about the stocks he picks for clients who need to withdraw their money within five years.
On that list are Disney, McDonald's, Procter & Gamble, Colgate-Palmolive, ExxonMobil, Bank of America, Goldman Sachs, Johnson & Johnson , Caterpillar, United Technologies, IBM, Apple, and Hewlett-Packard.