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Calpers Investment Chief Praises "Healthy Correction"

Russell Read sees "generally favorable market conditions," where "fundamentals remain strong." And he should know: Read is the chief investment officer for the California Public Employees’ Retirement System, known as Calpers, responsible for managing some $235 billion. He joined "Closing Bell" to talk about Tuesday and the future.

The CIO told CNBC's Maria Bartiromo that Tuesday's market panic was "inherently" a "healthy correction" -- and one whose time had come. He pointed to superheated growth patterns around the world, which he says should have been seen as harbingers of such a market shift -- for instance, he notes that China has enjoyed "an almost 100% increase in value" since September.

But the question remains: How to handle the correction? Read said his fund is well diversified, with its holdings divided into two-thirds equity (both public and private) and one-third fixed income and real estate. He described the challenge to fund managers and investors for the next 10 to 15 years as understanding the "key relationship" between corporate earnings and commodity prices.

As to where one ought to put one's money, Read augured that for the next five to 10 years, the three "big stories" will be "Asia, energy" -- both traditional and alternative -- "and infrastructure."

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    Kelly Evans is co-anchor of CNBC's "Closing Bell."