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.
"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."
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."