Investors should not sit on cash in fear of the market because companies buying back shares and central banks purchasing bonds will bolster stocks, BlackRock President Rob Kapito told CNBC Monday.
“My message to everyone is to get invested in the marketplace and try to put some of this noise away. There is always noise in the marketplace,” he said in an interview with ” Closing Bell .”
He noted that 2014 started off bumpy, as well, but the market ultimately returned 13.5 percent.
“More cash is in people’s hands than ever before, and I believe they are afraid because of the volatility,” Kapito said. “Every day you wait you are getting further and further behind.”
U.S. stocks rallied Thursday, after a two-day rout, with the Dow Jones industrial avearge (Dow Jones Global Indexes: .DJI) closing up 225.48 points, or 13 percent, the S&P 500 (^GSPC) adding 19.09 points, or one percent, and the Nasdaq (^IXIC) advancing 0.9 percent.
Read More A volatile stock market waits for earnings clarity
Kapito advised investors to look forward to some of the big trends that are occurring, like technology and low crude prices, specifically companies that would benefit from the “extraordinary” drop in oil. For example, he expects consumer discretionary goods to see a pop.
Trader Brian Kelly, founder of Brian Kelly Capital and a “Fast Money” contributor, thinks the market declines are probably not over yet, despite Thursday’s pop. He said the U.S. market is in a tough spot right now.
“What we’re talking about is capital flowing into the U.S. To me that’s the read coming off the Federal Reserve . They’re going to remain lower for longer; they’re going to be patient. That’s going to cause people to buy, at the very least, U.S. bonds and the U.S. dollar. Whether or not that money leaks into the stock market is unclear to me,” Kelly told “Closing Bell.”
“I think this is a very tough buy in the market right now.”
Jimmy Lee, managing partner at Strategic Wealth Partners, also thinks the market still has some volatility on the downside left to go.
“We are telling our clients to be ready so they don’t get panicked out of the market,” he said.
Read More This will be ‘devastating’ for earnings: Analyst
To get some protection, Lee suggested investors add some tactical strategies into their portfolio.
Heather Hughes, regional vice president at SunAmerica Funds said that dividend players would be a good play for those looking for a safe haven.
“Only four times in the last 50 years has the S&P 500 yielded more than the 10-year [Treasury],” she said.
She also thinks the energy space could be a good contrarian play and said health care is performing well.
-CNBC’s Kate Gibson contributed to this report.
- Investment & Company Information