The collapse of Silicon Valley Bank sparked fears of contagion in financial markets, with investors fleeing stocks and flocking to safe-haven assets such as U.S. Treasuries and gold. Markets calmed down a bit on Tuesday, with Kenny Polcari, chief market strategist at SlateStone Wealth, arguing that the worst of the stock sell-off is over. “I think today is the worst day ever,” he said on Tuesday. “I think you’re probably just a little shaken up right now.” “Some of these stocks have taken a lot of damage and they need to be rebalanced. I think they will, but I do think that after we get a better look at inflation through CPI and PPI and to get a better idea of what the Fed is going to do next week,” Polcari told CNBC’s “Squawk Box Asia.” Polcari, who spoke ahead of Tuesday’s consumer price index data and Wednesday’s producer price index data, said investors see inflation as the real problem. “I think after the weekend and today, investors will also realize that SVB is a very specific problem with the bank as well, that it doesn’t permeate the rest of the banking sector,” he added. The SVB debacle puts a sharper focus on next week’s FOMC meeting, with Polcari predicting that investors will “start buying” some of the hard-hit stocks once they know more about the Fed’s next move . How to play While investors have mostly shunned the banking sector in the near term, Polcari sees “some really interesting opportunities” in the space, especially in regional banks. “All this confusion creates opportunity. Not all, but there are certainly some really good names that won’t have a problem getting bashed for no reason other than they’re in the industry,” he said. Before its collapse, SVB, which specialized in venture capital funding and was a leading bank for technology and early-stage companies, came under pressure as the Federal Reserve raised interest rates eight times in 12 months. It also makes SVB particularly vulnerable to higher interest rate regimes. One of Polcari’s picks is New York Community Bancorp, which Polcari says is a “great name” punished simply for being a bank stock. He also likes the stock’s 12% dividend yield. The veteran strategist also sees opportunity elsewhere in the market. “I like health care because in this environment, health care is one of those things that people need. You need health care, you need consumer staples, you need energy. So yeah, I think there’s health care and of course there’s opportunities, they are also good dividend payers,” he said. One of his top picks is Pfizer. While the stock isn’t a “sexy big tech name,” it’s a “reliable, great drug name,” according to Polcari. He pointed to Pfizer’s proposed $43 billion acquisition of cancer drug maker Seagen as a sign of the industry’s health.