"I don't know how to handicap the Saudi Arabia and Iran war, an H-bomb in Korea, so I am not doing anything right here," said Saut.
The declines have also raised concerns that a weak January could result in a down year for stocks, but there is scant evidence for that idea. The current bull market, now nearing its seventh year, has shown resilience for several years running, and historic data shows that a bad start does not a bad year portend. And January is often grim: In one third of the years since 1945, shares in the S&P 500 hit their yearly lows in the first month of the year, said Sam Stovall of S&P Capital IQ.
With all the headwinds potentially facing stocks this year, it's not time to give up on them, but to be more selective, said Kim Forrest, senior equity research analyst, Fort Pitt Capital Group in Pittsburgh. She is looking at names in the retail, technology and materials sectors, looking for companies that are gaining market share.
"My sunshine is out there," she said.