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How to play the market selloff

Despite the stock market's continued selloff Friday, two portfolio managers said they believe U.S. stocks are still the place to be as long as investors wait for the right opportunity and invest wisely.

The Dow Jones industrial average and S&P 500 are are track to have their worst week since the week of November 25, 2011 thanks to concerns over slowing global growth.

"The markets maybe got a little ahead of themselves," UBS senior portfolio manager Jim Lacamp said in an interview with CNBC's "Squawk Alley."

"Now they're readjusting but at the end of the day what's going to be the favorite asset class? I don't think it's going to be bonds, I don't think it's going to be international markets. I think we'll see stock market investors come back to this market."

A trader works on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters
A trader works on the floor of the New York Stock Exchange.

He pointed out that while the plunge is unusual in the context of the last four years, it is actually normal for the market to go negative at some point in the year.

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Lacamp believes bond prices will stabilize and breadth, which is a measure of the number of stocks going up versus those that are going down, will improve.

He said investors should look at popular names that have been hammered in the recent rout, noting that "we've seen a lot of babies thrown out with the bathwater."

In fact, that was one indicator he was waiting for as an indication of when the selloff may abate.

"Investors are going to have to get used to a stock picker's market rather than a buy all the indexes all the time market that we've seen over the last few years," he said. "So use this selloff to buy some of those leaders off of their highs as they correct."

He specifically thinks health care will continue to see growth, as well as certain tech names.

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Chad Morganlander, portfolio manager at Stifel, told "Squawk Alley" while he wouldn't call the plunge "panic selling," he expects a readjustment of 5 to 15 percent in the market.

Therefore, he'd wait for "seams of opportunity" and be a little more pragmatic when it comes to buying stocks.

"We would move up the quality spectrum. Get out of the speculative asset classes that you've enjoyed," he told "Squawk Alley."

"The high flyers—stay away from them. Go to the companies like Dr Pepper, Hershey's, the boring of the boring."

Read MoreWhy have stocks dived this week?

—CNBC's Christopher Hayes contributed to this report.

Disclaimer

Disclosure: Chad Morganlander's possible positions in Dr Pepper and Hershey were unavailable.