The underpinnings of the equity market are solid and valuations remain reasonable, so there is no reason to believe Thursday's selloff is the start of a more severe downdraft, says David Lafferty, Chief Market Strategist at Natixis. Lafferty says first quarter earnings will be relatively flat but estimates should be easy to beat since guidance has been negative. Finally, Lafferty says he favors the financial and technology sectors because of their high growth rates and reasonable multiples.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

More from Video

Futures Fall on Further Trade Rhetoric from China and 4 Other Stories to Watch

Futures Fall on Further Trade Rhetoric from China and 4 Other Stories to Watch

Jim Cramer's Investing Rule 15: Don't Forget About Bonds

Jim Cramer's Investing Rule 15: Don't Forget About Bonds

Immigration, Instagram and Oil - Here's What You Can't Miss Wednesday

Immigration, Instagram and Oil - Here's What You Can't Miss Wednesday

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

3 Ways to Fix Starbucks Biggest Challenges

3 Ways to Fix Starbucks Biggest Challenges