Markets across the globe have seen a violent sell-off this week, with the FTSE 100 dropping into correction territory and Wall Street sliding as global growth concerns continue to mount.

But Fidelity Worldwide Investments’ global CIO for equities (pictured) is unperturbed by this correction, which he attributes to the strength of the US dollar, and plans to stock up on US equities as valuations become more attractive.

Rather than the start of a prolonged bear market, he sees the sell-off as a short-term correction which can prolong the bull market.

“I think this sell-off in developed markets will prove to be a mid-cycle correction and I am now looking to buy equities at these levels, especially US securities,” Rossi said. “If anything, this correction is likely to prolong the cycle rather than shorten it.

“Returns on equities in 2015 are going to be pretty good. The US stock market will eclipse its high of 2014 [and] we will certainly see double digit returns [there].”

However, Rossi is far less optimistic about the emerging market region, which he expects to suffer as the US dollar strength continues.

“The sustainability of the US economy is clear, but what is good news for the US presents a hurdle for other markets, particularly for emerging markets and to some extent also Europe.”

Rossi compared emerging markets now to the last bull market they experienced in 2003-2008.

Back then, they were supported by Chinese growth, the debasement of the US dollar and the rise of commodity prices, which particularly propped up South Africa, Brazil and Russia.

But, as Chinese growth slows and the dollar strengthens, Rossi said “we are witnessing the last remnants of that bull market being swept away”.

He expects developed markets to continue overtaking their emerging peers in the near term, as the latter struggle to cope with mounting pressures.

“The 2003-2008 rally was all about growth, now it is all about reform. Many countries are unable to reform, such as Russia and Brazil, but those that are – China, India and Mexico – will find financial markets lose patience with the slow pace of change.”

As developed markets outperform emerging economies, Rossi expects the US to be in the lead, with sectors such as IT and biotech producing the strongest returns.