Legendary investor Byron Wien says next 'real opportunities' in market are transportation and energy as tech falters

• Legendary investor Byron Wien told CNBC on Tuesday the next "real opportunities" in the market are in distressed areas like energy and transportation.
• He added that stocks in the manufacturing and materials sectors are reasonably priced if one assumes that "we get back to normal" within the next year or two.
• The recent market sell-off was not unexpected and was just a pullback from what is a "strong recovery market," according to Wien.

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As the Nasdaq faces its third straight day of losses, investing legend Byron Wien sees the next "real opportunities" for stocks in more distressed areas like energy and transportation.

Wien told CNBC on Tuesday: "I think energy is probably attractive, and if you can believe that transportation will ultimately recover, you can take the risk there."

The Energy Select Sector SPDR Fund (XLE) is up more than 28% since its March lows, while the SPDR S&P Transportation ETF (XTN) is up roughly 57% since the same date. By comparison, the broader S&P 500 is up 44% since depths of the coronavirus crash.

The Blackstone Advisory Partners vice chairman also said that stocks in the manufacturing and materials sectors are reasonably priced, "assuming that we get back to normal sometime within the next year or two."

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He added that he wasn't surprised at the recent tech stock sell-off. Based off of his projections for earnings into 2021 and 2022, FAANG stocks were "very fully valued," said Wien.

"This correction is not really unexpected. The market had been up nine out of 10 days, it was very overbought. And so this is just a pullback from what is basically a strong recovery market," the investor said.