Value investor David Katz joined CNBC Pro for an exclusive interview to share his investment strategy for 2016.
Katz, who manages $680 million at Matrix Asset Advisors, a New York-based investment firm he founded in 1986, thinks the recent market volatility has created opportunities in a group of stocks.
“We’d be pretty aggressively buying into this weakness,” said Katz, who believes it has paid off to get long certain stocks into similar dips, particularly for those investors with a long-term horizon.
The money manager describes the sell-off in the market this year as being disconnected from the economic realities, especially in the U.S., where data remain on solid footing.
“If you look at the market on a company-by-company basis, there are lots of wonderful businesses at 10 or 11 times earnings,” Katz said, pointing to JPMorgan as an example.
“It never feels good when you are buying into the weakness, but we think 12 months from now, you are going to be very happy,” he added.
Apart from his overall outlook for 2016, Katz revealed his favorite stocks right now as well as the type of companies investors should avoid.
See full video below to find out the stocks and to hear about his successful investment philosophy.