Investors will find market stability in a very unlikely place, expert says

Will the summer be that volatile?

At a time when financial markets in advanced economies are struggling for — or barely managing — gains, investors can look toward emerging markets for stability, BlackRock's Amer Bisat said Wednesday.

"Clearly, there's enormous amounts of uncertainty in the developed world," Bisat, the firm's emerging markets portfolio manager for fixed income, told CNBC's "Squawk on the Street," adding that some of the uncertainty comes from the U.S. elections and the United Kingdom's decision to leave the European Union.

"However, in my own sandbox, which is emerging markets, there is an oasis of stability," he said, noting that the sharp economic downturn in China has stabilized for now.

Last month, China's manufacturing Purchasing Managers' Index came in at 50, above a Reuters estimate of 49. A reading of more than 50 indicates expansion, while a reading below 50 shows contraction.

Meanwhile, Brazil's Bovespa and Argentina's Merval indexes are up 18 percent and 25 percent for the year, respectively.

"You're getting this very complicated situation where there's volatility in the developed world and stability in the EM world," Bisat said.

U.S. equities are virtually flat for 2016, after being taken for a wild ride following the Brexit vote.

"I think the velocity in the snap back of the rally surprised everyone, so perhaps [we'll see] further downside," Bill Nichols, senior managing director at Cantor Fitzgerald, said Wednesday in another "Squawk on the Street" interview.

The Dow Jones industrial average whipsawed Wednesday, trading mildly higher after a sharply lower open. The blue-chips index has also reclaimed most of its post-Brexit losses.

Dow 15-day chartSource: FactSet

That said, investors have also been placing large sums of money in safe-haven assets, like sovereign debt, pushing yields to record lows.

"Our mutual friend Rick Santelli pointed out that … negative interest rates only used to come up in Switzerland, when they were trying to get people not to give them their money because they were having a problem. Now they are all over the place, and they are disruptive," Art Cashin, director of floor operations for UBS, told CNBC's "Squawk on the Street" on Wednesday.