Despite the mass sell-off in the markets, investors shouldn't panic yet, according to Mark Tinker, Global Portfolio Manager, AXA Framlington.
"The fact that everybody's scared of something happening doesn't make it more likely to happen," he told CNBC Tuesday, as European stocks extended their losses on Tuesday morning, with energy shares leading the declines after oil prices fell below $80 per barrel on Monday.
Citing Bank of America shares, which lost more than 20 percent of their value yesterday, he said that there could be some opportunities for investors.
"When a stock which is not as highly regarded and is not at a high multiple can drop by 20 percent, that tells you more about the guy selling it than the company itself," he said.
"A lot of babies get thrown out with the bathwater."
"One of the problems is that many fund managers have allocated funds to equity so they will have to keep their exposure," he pointed out.
"Many institutional investors are being told what they are and aren't allowed to do.
"For private investors, private wealth managers and national funds, they are in a position where they can say there's real value here because they don't have to buy certain things.
He admitted that growth expectations are now "seriously depressed."
Standard & Poor's downgrade of the US economy from AAA status for the first time in history helped spark a market sell-off this week.
Investors are worried about the prospect of a second, more prolonged, global slowdown, while policy makers have an increasingly limited box of tricks to stave off inflation and slow growth.
Prices for commodities are rising, and the price of gold is scaling new highs as investors look for safe havens.
"The people getting most upset about this are owners of fixed income, for whom inflation is an absolute killer," said Tinker.
"There's a battle between the people dominating the advice who have a vested interest in deflation and depression, and the relatively silent majority saying 2, 3, 4 percent inflation is fine for us rather than a massive amount of disruption."