He says that although there was an obvious market correction, technical issues were also to blame for Black Monday. But he is adamant that both the domestic economies of the United States and Europe are "looking fine" and working. However, the slowing global manufacturing cycle is what's concerning for investors.

For this reason, Knuthsen says investors may decide the best way to manage increased volatility is by reducing overall risk levels in their portfolios. He explains why he's been reducing his own equity exposure.