The stock market correction is already at least two-thirds over, value investor David Katz told CNBC on Friday.
The S&P 500 fell into correction territory on Thursday, down more than 10 percent from its record reached in January.
“The quicker the correction, if they are not economic-based, the quicker the recovery,” Katz said in an interview with “Closing Bell.”
According to a recent note from Peter Oppenheimer, Goldman Sachs’ chief global equity strategist, the average bull market correction is 13 percent over four months. It then takes four months to recover, he said.
Katz, however, believes the market will be moving in a better direction within one to three months.
“We would be buying into this weakness. A day like today, when the market’s off pretty sharply by midday, we’d be aggressively buying into that,” the chief investment officer at Matrix Asset Advisors said.
“You might look stupid in a day, you might look stupid in a week or a month, but we think three months from now stocks are going to be a lot higher.”
He noted that businesses are doing well, earnings season came in “great,” and outlooks were very positive.
The Dow Jones industrial average closed more than 300 points higher on Friday but still had its worst week in two years. The Dow and the S&P 500 both lost 5.2 percent on the week, while the Nasdaq shed 5.1 percent as rising interest rates and inflation fears spooked investors.
However, Katz isn’t convinced that inflation is going to be a problem.
“We think it’s drifting higher,” he said, “but we don’t think you’re going to see a spike in inflation.”
Rene Nourse, managing director at Urban Wealth Management, is also bullish overall on the market, but she predicts more downside ahead.
She pointed to several factors that are kicking in right now, like the fact that the economy is moving from being driven by monetary policy to being driven by fiscal policy. She also cited higher inflation and interest rates, as well as unemployment that has dropped “tremendously.”
“It’s going to take a few weeks to maybe a couple of months for things to settle in. I am very positive on the year,” she told “Closing Bell.”
— CNBC’s Evelyn Cheng and Tom Franck contributed to this report.
