NEW YORK (TheStreet) -- After Tuesday's volatile trading session, Wednesday didn't offer investors much relief, with the S&P 500 down almost 2% at the session lows. Despite the recent pullback, investors shouldn't get too concerned about short-term correction, Josh Brown, CEO and co-founder of Ritholtz Wealth Management, said on CNBC's "Fast Money Halftime" show.
These short-term trends shouldn't sway investors from focusing on the long-term trends, he continued. These trends include: stocks going higher, the U.S. dollar going higher, oil prices going lower and bond yields going lower.
The increased volatility is here to stay, but investors should learn how to embrace it, said Jon Najarian, co-founder of optionmonster.com and trademonster.com. Volatility generally results in overreactive selloffs, which creates good buying opportunities and healthy trading envionrments.
"Volatility is the new normal," added Savita Subramanian, head of U.S. equity and quantitative strategy at Bank of America/Merrill Lynch. If investors look past some of the "bumpiness" in the market, they will find a lot of bright spots in the economy, she reasoned.
Capital expenditures will likely decline due to the major cutbacks by the energy companies. But overall, there's a "pretty broad-spread pickup in capital spending from other companies," Subramanian reasoned. Fourth quarter earnings results should come in slightly better-than-expected, but guidance will be the key thing for investors to focus on. Her favorite equity group at the moment is large cap technology stocks.
Jim Lebenthal, CFO and CIO of Lebenthal & Company, agreed that large cap tech stocks look attractive on the long side. Investors should stay the course on deeper pullbacks and use it as a buying opportunity, even if the correction is a 10% decline.
He also likes the financial stocks for the longer term. In the short-term, the sector will have some headwinds, Lebenthal acknowledged, but the valuations are attractive. He is long Citigroup (C) - Get Report and said a 10% pullback in the sector would create a "screaming buy" for investors.
J.P. Morgan (JPM) - Get Report is also attractive on the long side, according to Pete Najarian, co-founder of optionmonster.com and trademonster.com. He added to his long position on Wednesday with the stock down 5.5% due its fourth quarter earnings miss. The company had some very positive metrics in the quarter and of course, a few negatives too, he acknowledged. However, the positives outweigh the negatives, especially with the stock trading near support levels.
While some sectors may look more attractive in terms of earnings per share or revenue growth, the banks are very, very cheap based on valuation, Brown added. While short-term headwinds may persist, longer term investors should find this sector quite attractive.
There's also value in the much-hated energy sector. At least, that's according to Bill Nygren, portfolio manager of the 5-star rated Oakmark Fund. He likes shares of Chesapeake Energy (CHK) - Get Report . The company's new management improved its balance sheet and efficiency. He also likes Apache (APA) - Get Report .
Nygren reasoned that it's unlikely for oil prices to stay in the $40 per barrel range, as the five year futures contracts are still trading for around $70 barrel. An eventual rebound in oil prices will create good returns on these investments in Chesapeake Energy and Apache. He also likes General Electric (GE) - Get Report , which has underperformed the broader market and trades at a discount based on forward estimates. The new CFO is focused on returning cash to shareholders and the stock price should rebound amid incredibly negative investor sentiment.
Energy names like Chesapeake and Apache will be hard for a lot of investors to own, Najarian said, simply due to the volatility. If investors can handle it though, they should pay off in the long-term.
For their final trades, Lebenthal is buying the San Juan Basin Royalty Trust(SJT) - Get Report , Pete Najarian is a buyer of Merck (MRK) - Get Report and Jon Najarian said to buy Oneok(OKE) - Get Report .
-- Written by Bret Kenwell