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Power Play: Too early to get into energy and commodities

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The Dow is down about 4 percent since last Thursday, when the Fed left interest rates unchanged.

Despite this sell-off, Steve Auth, chief investment officer at Federated Investors, tells CNBC's "Power Lunch" the market will find new legs later this year and volatility is a signal to buy stocks and re-position portfolios.

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But you have to be selective and stick to domestic cyclicals.

"We still think it is too early to buy into industrial and commodity names with big overseas exposure, as well as energy stocks," Auth said.

He believes oil will remain under pressure due to continued oversupply and weak demand, but things may improve soon. "We think energy is getting close to curing itself, as U.S. supply is being cut back, and the global economy re-accelerates next year," Auth said.

Industrials and energy are lower during trading, but West Texas Intermediate and Brent crude are higher.