Last week's equities plunge is not a cause for fear — in fact, it's an opportunity to buy, some investment analysts said Monday as global stock markets sunk into the red.
The Dow Jones fell a whopping 666 points on Friday, its biggest single-day sell-off since June 2016. But this is not the start of a major correction, Vassilis Papaioannou, chief investment officer at London-based investment firm Dolfin, told CNBC.
Instead, the current market shift represents "an excellent buying opportunity," he said.
"I think that sell-off has been expected, because we had a very good start to the year. So we switched from greed to fear very quickly, if you look what equities have done in the first three weeks of the year."
Major U.S. indices hit record highs in January, continuing the bull run of the previous year as the Dow Jones and S&P 500 saw their best monthly gains since March 2016.
"Going forward, I think it is more that we focus on the fundamentals and earnings growth — don't forget it is still earnings season — and investors should look out for buying opportunities," Papaioannou said.
On where to look for these opportunities, Papaioannou pointed to euro zone banks in particular, as well as Europe's consumer and energy sectors, noting the recovery in Europe and outlook for rising interest rates.
"We favor the euro zone and the U.S., but predominantly the euro zone looks very interesting," he said. "Within the euro zone we favor banks, consumer and energy, because it makes absolute sense what we have seen — this continuation and this full-speed recovery that has been taking place in Europe should be reflected in the equity markets."