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Power Play: Fighting back against market volatility

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The CBOE Volatility Index, or fear gauge, is up a whopping 124 percent in the past week as concerns about China, the Fed and commodities rattle global markets.

Two veteran portfolio managers tell CNBC's "Power Lunch" on Wednesday, they see more volatility as we head into the fall.

"Ripples and reverberations could pull Europe and even the U.S. south given how weak Euroland growth is," said Richard Weiss, senior portfolio manager at American Century Investments.

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Michael Cuggino, president of Permanent Portfolio Funds, believes there is global pressure on the U.S. to hold off on an interest rate hike.

"I can't see how they can raise in this environment given global issues in September, December maybe, too early to tell," Cuggino said.

With the wild market swings, Weiss uses VIX insurance to buffer the downside.

"Rather than sell equities in a panic, we purchase VIX futures as insurance against radical market declines. VIX itself exhibits extreme volatility and so only a very small position is needed to hedge a much larger portfolio," Weiss said.