Investors should take advantage of the panic, says strategist

With the Brexit vote sending U.S. stocks plunging, investors should take advantage of the panic, closely followed strategist Jim Paulsen said Monday.

In fact, he would be significantly underweight in the safe-haven assets people are now flocking to.

"Take days like today and redistribute some of those funds back towards some of the stuff that is just being thrown out indiscriminately — the more cyclical, the more risk-on sort of assets," the chief investment strategist for Wells Capital Management said in an interview with CNBC's "Power Lunch."

"I think there's a strong probability that the emotional intensity that we've had here the last couple of days eventually starts to wind down a little bit."

That's because investors will start to focus on the fact that Britain's disentanglement from the European Union will take a while to unfold, with the negative fallout occurring over a number of years, not days, Paulsen explained.

The Dow Jones industrial average closed down more than 600 points Friday after the surprise about the U.K.'s vote to leave the EU. Stocks continued to fall Monday, with the Dow closing down more than 250 points.

Paulsen pointed out that a big part of the stock market's drop was due to the rise that took place in the the early part of last week.

"I think it's overstated how much damage is being done here. I think it's not nearly as severe," he said.

Bill Stone, chief investment strategist at PNC Institutional Asset Management, believes that while there is concern about a downside risk over the summer, it is hard to know what will happen because there are so many unanswered questions.

"Any time you can buy on dips when you don't think the world really is going to come to an end, I think is what you should at least start doing," he said.

Meanwhile, Kate Warne, investment strategist at Edward Jones, thinks there are opportunities in companies that pay dividends but aren't the highest yielders. She also likes companies with international exposure and that have a history of making their own luck in a challenging environment.

What's more, it's important to have a well-diversified portfolio, she told "Power Lunch."

"If you are building that well-diversified portfolio, then you're OK, and in this overall environment you don't have to make those calls and you don't have to listen to the polls and the forecasts."