Power Play: What's a real global risk?

North Korean leader Kim Jong Un
KCNA | Reuters
North Korean leader Kim Jong Un

The Dow, Nasdaq and S&P 500 are down more than 5 percent this week as concerns about China, North Korea and the Middle East gripped global markets.

Scott Wren, senior global equity strategist at Wells Fargo Investment Institute, tells CNBC's "Power Lunch" on Friday any pullback is a buying opportunity.

"China's currency devaluation, the fall in oil prices and a mid-year soft spot in global manufacturing activity have created bearish sentiment around the potential for an economic slowdown and the threat of global deflation. Our 2016 GDP estimate is 6.2 percent....the 'controlled slowdown' remains intact," Wren said.

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The nuclear threat posed by China's neighbor North Korea is something he's paying attention to closely.

"North Korea means very little from an economic perspective, but its belligerence puts China in a tough position as an ally and threatens South Korea, which is a large industrial nation and close U.S. partner. This is just one more thing for investors/markets to have to try and incorporate into their expectations for the upcoming year," Wren said.

As for the tension between Saudi Arabia and Iran, Wren doesn't think it will lead to higher oil prices.

"Both Saudi Arabia and Iran will try and pump as much oil as possible to try and gain the upper hand on the other. This should keep a lid on oil and gasoline prices and continue to put additional dollars in the pockets of U.S. consumers," Wren said.

WTI and Brent crude closed lower on Friday and are down 10 percent since the beginning of the year.