“In the last week, we were looking for a 5 to 10 percent correction, but we think it may be a little bit deeper than that—we’re going to go through 10 percent.”
Spiropoulos advised investors to use a “multi-faceted strategy” when approaching stocks.
“You should be investing in things that you eat, drink or smoke—managed futures, commodities, currency strategies, equity, long-short—invest somehow, but don’t just sit back and do nothing,” he said.
“There’s still a lot of cash out there that is homeless.”
In the meantime, Deighan said although there could be a 6 to 10 percent upside in the next few months, he sees a huge market drop looming.
“I see the potential for a 25 to 50 percent drop,” he said. “It could be abrupt—it could take a month or so to happen.”
He also expressed concerns regarding the bond market.
“We’ve got a massive bond bubble, a steepening of the yield curve, the Fed is going to have to start pulling back on buying Treasurys, Greece is having troubles…the yield curve is really scary,” he explained.
“For every dollar that went into stock funds in the last year, 13 dollars went into bond funds—we’ve got a huge, huge bond bubble right now.”
More Market Opinions:
CNBC Data Pages:
CNBC's Companies in the News:
Bank of America
Congress To Probe Toyota Recalls; Sets Hearing
Bill Gates Promises $10 Billion for Vaccines
- Chevron Profit Tumbles 37%, Hurt by Refining Slump
McDonald's to Up 2010 China Investment by a Quarter
No immediate information was available for Deighan or Spiropoulos.