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Volatility Provides Opportunity: Abby Joseph Cohen

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The market's volatility can provide investment opportunities for those who can look beyond the short term, Abby Joseph Cohen told CNBC Monday.

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"By any metric there is good value in the U.S. equity market," said the Goldman Sachs senior U.S. investment strategist.  But "we get strong reaction on a company-specific basis — Intel for instance — because there is not much wiggle room for disappointment in investors’ thought processes."

Intel cut is fourth-quarter revenue outlookonMonday.

Most investors are especially nervous this year as they don't want to "give up whatever returns" they have logged for the calendar year, given the current volatility in Europe and the U.S., Cohen said.

This is unusual, she pointed out, because "normally we would see by Thanksgiving time a willingness to look out further into the future."

But investors are particularly risk-averse this year, so they're not thinking of the longer term.

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Cohen: There is Notable Undervaluation in Markets

Cohen predicted last week that stocks will stay undervalued until "confidence is rebuilt." So where do you invest now?

Without naming specific companies, Cohen said investors should focus on "high-quality names, good quality companies" that are selling at low price-to-earnings ratios and have strong balance sheets and lots of cash that can be used for paying dividends or buying other companies.

But she also put a spotlight on opportunities in what she called "green industries" — again naming no companies.

"What we see in global climate policy is a move away from the global coordinated policy, and see private-sector solutions coming to the fore," she said, which means more business for alternative-energy companies in the future.