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A value hunter cautiously bulks up his portfolio

Trader on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters
Trader on the floor of the New York Stock Exchange.

U.S. stocks tried to hold the rally Wednesday, with the Dow Jones Industrial average gaining 346 points in mid-afternoon trading, after spiking as much as 433.37 points at the open.

But given the recent global selloff when the S&P 500 alone lost nearly $2 trillion in market capitalization the past week-and-a-half, the volatility appears to have convinced some investors to either bargain hunt or sell assets before another potential downturn.

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Vahan Janjigian, chief investment strategist at Greenwich Wealth Management, told CNBC's "Power Lunch" Wednesday he is cautiously bulking up on some stocks, while shedding weaker assets. .

"It is a minefield out there, so while I am adding to positions as they weaken, I am not jumping in with both feet, since I expect the markets to go lower before it bottoms, maybe even a 15 to 20 percent from the top."

Janjigian remains firmly bearish on Amazon, Netflix and Tesla right now. "Thes are all large-cap growth companies with little or no earnings, so I am avoiding these three completely."

"As we transition from a period of strong stock gains in a weak economy to a period of average stock gains, I expect to see a rotation into oversold stocks, like Verizon and IBM."

Janjigian also likes the Energy Select Sector SPDR ETF. "This is a great way to have broad exposure to Chevron and ExxonMobil without having to own those individual names."

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Despite being a long-term investor, Janjigian explained why value investors should ultimately embrace the recent selloff as a buying opportunity.

"It is simple: Selloffs allow you to buy more shares at lower prices. if we are smart and patient, and make logical investment decisions," said Janjigian. "We can take advantage of price drops that scare other investors and, essentially, make them sell their stocks to us for less than they are worth. Just don't use up all your ammunition at once. Keep some cash in case even better opportunities arise."