SmartPortfolio's Welsh: Expect a big leg down before the market truly rallies

Jim Welsh, portfolio manager at SmartPortfolios, says that in the standard bear market, there is a 'reflex rally,' which is what he feels the market has been going through for roughly the last week, but that the stock market typically can't hold that rally for long before testing new depths. That's why he believes another significant drop lies ahead --  on that could shave nearly 400 points off the Standard and Poor's 500 -- before the real rally begins. Long-term investors with a five-year or longer horizon should ride the market out, Welsh notes, but short-term monies need to be protected. Also on the show, Robert Michaud from New Frontier Advisors discusses the need to be fully diversified coming through troubling market times, Cheryl Pate of Angel Oak Capital discusses community banking investments in closed-end funds, and Martin Leclerc of Barrack Yard Advisors discusses his disciplined approach to stocks in the Market Call.