Josh Brown issued a warning for investors on Tuesday, noting that a new bear market could soon hit the downside. “You can divide everyone on Wall Street into two camps right now. Do we break the October low or not? I think we break the October low,” Brown, CEO of Ritholtz Wealth Management, told CNBC Tuesday. Let’s break it.” “Halftime Report.” Stocks fell to the bottom of their bear market in October 2022, with the S&P 500 falling below the key 3,500 level, as investors weighed the prospect of further interest rate hikes from the Federal Reserve to fight persistent inflation. Some better-than-expected corporate reports helped markets close the month nearly 8% higher. Brown pointed to a view held among bullish strategists on Wall Street that stocks would sell off in the first half of 2023 before rebounding in the second half of the year. “Given all the adversity, all the negativity, it’s a lot more logical to be in that camp,” Brown said. “And then you have the second half of the year to do whatever you need to do to catch up if you missed the bottom or whatever.” Still, he said there are buying opportunities in names like insurance conglomerate Chubb, beauty retailer Ulta Beauty and electric utility company NextEra Energy. Not only does property and casualty insurer Chubb have pricing power in 2023, the stock is also one of just 11 stocks in the S&P 500 currently trading within 5% of its all-time high, according to Brown. Is. “This stock is on the verge of breaking,” Brown said. The whole property casualty group looks great. I talked to insurance brokers, they tell me what they’re hearing from the carriers. Expect a steep hike in premiums in 2023. And guess what, no matter what they are, people are going to pay for them, because what choice do you have?” Ulta Beauty, meanwhile, is a “raging bull stock” that may still be underperforming in 2023. New highs could be reached last year, Brown said. Shares of Ulta are up more than 13% in 2022, outpacing the S&P 500’s nearly 19% decline, as investors flock to what is considered a recession-resistant business. Finally, NextEra Energy is the beneficiary of the Inflation Reduction Act that has an “incredible growth engine” while also offering a 2% dividend yield, according to FactSet. Brown projects aerospace and defense as his preferred sectors for 2023. adding that equities in the sector will serve as a hedge against rising geopolitical risks. This year. Other members of the panel named their top picks for this year. Hightower’s Stephanie Link General Electric, Broadcom and Starbucks are his picks for 2023. Joe Terra of Virtuous Investment Partners Nova names Microsoft, Prologis, Texa S Instruments its top buys.