Weak China manufacturing data Tuesday sparked another wave of selling in global markets.
In sentiment-driven, risk-off moves all stocks get sold, no matter if they are exposed to the actual fundamental issues or not, which in this case is the economic tumult in China and emerging markets.
During especially sharp corrections there is often uneconomic selling of quality companies for reasons such as deleveraging by funds to meet redemptions, according to traders.
Experienced investors use these dips to find the value babies thrown out with the bath water.
"The current market selloff is an opportunity for investors to update their portfolio," Belpointe Asset Management Chief Strategist David Nelson wrote last Wednesday in a piece for CNBC Pro, where he advocated the health-care sector and insurers as a safe haven from China.
U.S economic data from housing, auto and retail sales have remained resilient, and many on Wall Street are adamant that a Chinese recession will not have a large impact on the domestic economy.
"Despite weak China economic data, the overall impact on the U.S. economy is limited," Goldman's David Kostin said in a note to clients in July. "Our U.S. economics research team estimates that a 1 percentage point shock to China GDP growth would result in a modest 0.06 percentage point decline in U.S. growth."
CNBC asked experts and compiled the best Street research on which stocks investors should buy on dips because they have been oversold in this China-driven drop.