David Sowerby, managing director at Ancora Advisors, told CNBC that today’s market plunge is a buying opportunity.
“As long as you’re patient and you put some money to work today, you will be better off, because I don’t think it will be an event just like it wasn’t ultimately with Greece, with Brexit and many points in between,” Sowerby said Tuesday on “Power Lunch.”
Both the stock market and the euro plunged on Tuesday over political concerns in Italy. The Dow Jones industrial average was down more than 450 points, or 1.8 percent. The S&P 500 was down 1.4 percent, and the tech-heavy Nasdaq composite declined by 0.7 percent.
While some investors fear a decline in global credit could mean bad news for those who currently have international debt, Sowerby said, “The contagion is nonexistent.”
Instead, he said, investors should use the opportunity to “go buy.”
Sowerby recommended buying a mix of large-cap banks, such as J.P. Morgan, with small financial institutions.
But it’s not just financials that investors should consider buying, said Michael Arone, managing director and chief investment strategist at State Street Global Advisors. He called today’s market movement a “Goldilocks-ish environment” and said investors should consider buying technology.
“You have good but not great growth, reasonably low rates, reasonably benign inflation,” Arone said on “Power Lunch.”
“And in that environment, you want to buy growth,” he said. “And where that growth is is very acute right now. It’s in technology.”
“Buying in areas where revenue is growing and earnings per share are growing are the places where investors want to be in the market,” Arone said.
