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Grit your teeth and own this: USAA's Williams

Stocks appear to be back in sell-off mode as the Dow Jones industrial average fell nearly 300 points Tuesday. Energy and financials led the S&P 500 lower.

"I think it's really mainly fear of a recession that's being expressed and the Treasury being down, and oil being down," Bernie Williams, chief investment officer of USAA Investment Solutions, told CNBC's "Power Lunch" on Tuesday.

The financial sector, which is the worst performer year to date, was down more than 2 percent on the day.

"But these financials now are just so cheap, I think you may have to grit your teeth and own them," Williams said, adding that financial stocks are "very well capitalized."

While Williams contends that financial stocks are cheap, Matt Whitbread, investment manager at Baring Asset Management, (who doesn't own financials at the moment), says that sovereign wealth funds that own a lot shares in the sector have started liquidating their shares.

"[Financials] are risky," Whitbread said Tuesday on "Power Lunch." "We do look to add them back at some point ... on the long-term basis they'll likely be a solid trade."

Still, Williams says fears of an impending recession and the energy sector's lag is what's scaring away investors.

"The energy book that may reside in some of these banks' book," Williams said. "For the big money center banks I don't think this is a huge issue right now."

Goldman Sachs weighed on the Dow during Tuesday's trading, shaving off almost 55 points from the index.

"I think this decline in the market is largely caused by liquidation going on from places like Russia and the Middle East ... due to the decline in commodities," Steve Massocca, chief investment officer of Wedbush Equity Management, told CNBC.

Massocca says that equities are currently on sale and what's reflected in the market is low oil prices encouraging investors to move their assets.

"The fundamentals of all these companies are very, very good," he said.

"This is a real opportunity to pick stocks up at bargain prices because of forced liquidation going on."