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Power Play: Have to be cautious on global markets

The Eiffel Tower in Paris
Fred Dufour | AFP | Getty Images
The Eiffel Tower in Paris

European markets may be outperforming the U.S. this year, but that doesn't mean investors should put all of their money in Europe right now.

American Century Investments Senior Portfolio Manager Richard Weiss tells CNBC's "Power Lunch" on Wednesday global markets are at an inflection point.

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"Various issues [are] weighing on the markets currently, including Chinese economic and financial uncertainty. Ripples and reverberations could pull Europe and even [the] U.S. south given how weak euroland growth is," Weiss said.

He is taking a more defensive position and is not blindly buying on market dips.

"Most of our portfolios exhibit what is known as 'home bias' (or an overweight in our home country stock market). This has helped to buffer market shocks, including this recent downdraft. We are tactically reducing positions outside the U.S.," Weiss said.

The Dow, S&P 500, Nasdaq and pan-European STOXX 600 are all higher on Wednesday.