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Don't conflate THIS with a slowdown: Pimco's Mather

With concerns in the market over just how big of an impact a looming rate hike could have on fragile global markets, the Dow Jones industrial average on Thursday suffered its worst day of the year.

But investors shouldn't conflate one factor that may be getting them too gloomy on global growth, according to Scott Mather, Pimco's chief investment officer of U.S. core strategies.

"One mistake investors might be making is mapping the commodity weakness into a generalized global slowdown which would impact the U.S. as well," he said. "We shouldn't forget the reduction in commodity prices is a good thing for U.S. growth and for most developed world consumers of commodities."

Read MoreMore signs the global commodity slowdown is here to stay

Scott Mather CIO of Pimco
Source: PIMCO
Scott Mather CIO of Pimco

If anything, commodity prices were experiencing a supply shock rather than a contraction in demand, Mather said.

In the short term, however, Mather did mention that a rate hike would likely lead to strengthened volatility, sending the VIX to levels not seen since January.

"It's very likely that we will see an episode or many episodes perhaps as we move through the first tightening or two where the VIX is above 20, he said. "What investors should be doing is making sure that they're not extended fully out the risk spectrum."

As for when the Fed liftoff would actually occur, Mather called about a 50 percent chance a hike would come in September, adding he believes the market is mispricing a rate hike for December.

Read MoreFed-watch: The great rate debate rages on

Mather advised investors to avoid overexposure during such volatility and predicted many more opportunities to add risk at favorable price would follow in the quarters ahead.