'Shark Tank' star Kevin O'Leary says it's a good time to buy stocks — and doesn't see a recession yet

• Kevin O'Leary said Trump's tariffs were a temporary tactic to secure better terms of trade.
• The "Shark Tank" investor added the slump in stocks has thrown up bargains for bold buyers.
• O'Leary said he isn't expecting a recession yet given the strength of consumers and the economy.

The S&P 500 may have followed the Nasdaq Composite into correction territory on Thursday, but Kevin O'Leary has said the pain will be temporary — and bargain hunters should buy the dip.

President Donald Trump slapped 25% tariffs on all steel and aluminum imports on Wednesday, sparking retaliatory tariffs from the EU and Canada. Trump promptly threatened to impose 200% tariffs on French Champagne and other alcoholic drinks from Europe.

Escalating import duties have reignited inflation fears and recession concerns. The S&P 500 closed Thursday more than 10% below its February high.

Tariffs should be viewed as "negotiating tools of economic warfare," O'Leary said in a Yahoo Finance interview published on Thursday morning.

"I'm in the camp that says Trump doesn't want to trash the market indefinitely," the "Shark Tank" star said. He said the president may be seeking to level the terms of global trade for America before next year's midterm elections.

The O'Leary Ventures chairman said that stocks were "extremely expensive," but the sell-off means there are now great companies with strong growth prospects trading at compelling prices. The small-cap Russell 2000 index is "fraught with value all over the place," he said.

The celebrity investor said he's plowed more of his money into index funds because they're "on sale," and people are acting like it's the end of the world when the reality is much less dire.

"Nobody likes volatility, but as an investor, you learn that you have to hold your nose, and when there's blood in the streets, you have to be buying," O'Leary said. "You just have to look long-term and realize these are buying opportunities."

The self-proclaimed "Mr Wonderful" said he doesn't expect a near-term economic contraction. He pointed to the strength of consumers and the broader economy, the robust performance of his myriad private companies, and the fact he doesn't expect tariffs to stay in place for long.

"No, no, I don't see the recession," O'Leary said. "Look, I'm not saying we won't have one, but I don't see it yet."