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Power Play: Where to invest when China devalues its currency

Employees work in a textile factory in Suzhou, China.
China Daily | Reuters
Employees work in a textile factory in Suzhou, China.

China's currency devaluation shaking global markets this week, but when there is volatility, there is opportunity.

Craig Columbus, Tower Square Investment Management President, tells CNBC's "Power Lunch" on Friday yuan depreciation will force China's neighbor Japan to take on more aggressive monetary policy.

"This impacts the Yen more and will cause more stimulus in Japan. This will be good for Japanese equities," Columbus said.

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He believes China's move will also put pressure on the European Central Bank to follow through with its quantitative easing program. Columbus likes both Japan and Europe right now.

"There are signs of improvement in both of those economies," Columbus said.

Susan Fulton, president and founder of FBB Capital Partners, is closely monitoring companies that have significant sales in China.

"Periods of dislocation like this do not change our core investment strategy which is to look for companies that we feel are in the early stages of a long-term secular transformation. These are typically already industry leaders whose strategy and growth prospects look compelling relative to investor expectations," Fulton said.

The Nikkei and the pan-European Stoxx 600 index both closed lower on Friday.