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TIAA-CREF: Buy Europe, Skip China

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U.S. stocks decline on Friday after the end of one of the most volatile weeks in the global markets

The Dow Jones Industrial Average fell 73 points 16581. The lost 0.3% and the Nasdaq Composite dropped 0.1%.

The pan-European Stoxx Europe 600 index rose 0.3%, while the Shanghai Composite Index ended 4.8% higher.

Chris Semenuk, portfolio manager for the $4 billion TIAA-CREF International Equity Fund, told CNBC's "Power Lunch" Friday the U.S. remains a safe haven when geopolitical events become uncertain. "But the problem is, how much do you want to pay for that safety, because its still relatively more expensive compared to other regions."

TIAA-CREF overweight Europe

Instead, Semenuk suggests putting money to work in Europe. "Europe used to be everyone's punching bag, but no longer. Now, it is the only part of the world which has the support of quantitative easing by its central bank, the tailwind of weaker Euro, trough EPS poised to recover and much better shareholder governance. For those reasons, it is our favorite place for investment opportunities."

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As for China, Semenuk remains bearish on the region for the foreseeable future. "China has lost credibility with many global investors because there is too much government policy driving its markets. Beijing needs to decide if they are capitalists or not. Until they commit to a direction, we'll steer relatively clear."

TIAA-CREF is a leading asset manager and national financial services organization. TIAA-CREF has total $869 billion in assets under management

According to Morningstar, TIAA-CREF International Equity Fund is up ten percent year-to-date and 30.87 percent over the past three years.