Charles Schwab Co. Believes Its Going To Be An Year Of Gain For Stocks

Most of the global indices have closed deep in the red today and the U.S. markets are also having a rough day with the S&P500 and Nasdaq down by almost 1.4 percent. However, Jeffrey Kleintop from Charles Schwab Corp SCHW feels that this is not a precursor for things to come, but rather an opportunity to rebalance one's portfolio.

Kleintop was on CNBC Tuesday to discuss the yearly outlook for stocks and why Asia might provide respite to investors.

Volatility Is Back

"Well, I think it's volatility…it's a dip in the negative territory on a year to date basis for some of the major indices, it's probably not the first time we are going to see that," Kleintop said. "Volatility is coming back, we have got rate hikes this year, we have got wide moves in commodity prices, the dollar, political issues with Greece and others this year. I think we are going to see this volatility, you have got to get used to it."

Year Of Gains

Kleintop was asked if today's slump is a minor pullback or is it a sign for a major correction to come. He replied, "We could certainly see a bit more downside here before we bottom, but I think we end the year higher. We at Schwab believe this is going to be a year of gains for the stocks. So you want to look to rebalance your portfolio to insulate yourself from volatility, maybe buy the dips."

Asia Providing Respite

He continued, "I'd increasingly look to Asia as a respite from some of this. You are actually seeing a stronger dollar payoff there. The trade data looks good, more stimulus is coming into play. That maybe an area in your portfolio that may actually benefit from some of the turmoil we are seeing elsewhere.