Stocks traded lower on Wendesday after a flat open. Is the pullback an opportunity for investors to get into the market? Paul Schatz, president at Heritage Capital, shared his insights.
“We had a huge run last year off the lows, so this is a normal, healthy, expected pullback,” Schatz told CNBC.
“I do not think the rally is over.”
Schatz said while there is a possibility of another 1 to 4 percent market pullback, the potential of a market upside of 10 percent or more is greater.
“Maybe it’s over, or maybe in a couple of days or weeks,” he said. “This is a time where we should get ready for a rally in the spring and the early summer.”
However, Schatz warned that the rally due in spring will be the final rally before a much bigger decline in the fall and winter.
Schatz said the energy services, leisure and real estate sectors will be the next market leaders.
“We cannot keep living on this government bailout money,” he said. It’s never worked in history and it’s not going to work now.”
- Watch Schatz's Previous Appearance on CNBC (Jan. 14, 2010)
- Top Strategist Warns: 'Beware Next Bubble'
- Market Tips: Volatile Swings Will Continue
- 10% Market Pullback Coming: Strategist
CNBC Data Pages:
Top Energy Service Companies:
Key Energy Services
Basic Energy Services
No immediate information was available for Schatz or his firm.