Market volatility is not a new thing. Share markets continually experience bouts of volatility after periods of calm as investors become increasingly unnerved by “what if” scenarios.

As investors saw during the Eurozone debt crisis in 2012, the US debt ceiling crisis in 2013 and more recently, the Brexit referendum in June this year, share markets irrationally sell-off when faced with new unknowns.

However, as with each of the prior share market sell offs, reality eventually sets in as investors realise the kerfuffle is overdone, bringing markets back to equilibrium (and generally taking them higher over time). Accordingly, savvy investors should see through the ‘noise’ and take advantage of market sell-offs by buying top quality companies unaffected by imminent concerns.

I believe CSL Limited (ASX: CSL) and Telstra Corporation Ltd (ASX: TLS) are two companies that fit this bill today.

Monetary policy crisis?

Global markets have entered a risk-off phase after the European Central Bank (ECB) failed to announce additional stimulus measures last week. Markets reacted to the news as a sign that global central banks have little ammunition left to stave off global deflationary pressures, causing markets to plunge into a spiral of recessionary fear.

At the same time, data from the United States suggests a rate rise by the Federal Reserve is imminent, causing investors to flee from high yielding bond proxies like Sydney Airport Holdings Ltd (ASX: SYD), Transurban Group (ASX: TCL) and listed REITs into safer assets classes (like cash).

These divergent monetary policies have global markets gripped with fear, resulting in widespread selling on the S&P/ASX 200 Index (ASX: XJO) as investors sell today and ask questions later.

Nonetheless, I believe these worries are overblown and accordingly see an opportunity in blue chip stocks CSL and Telstra.

CSL Limited

As I explained here, CSL is a global leader in blood plasma, immunoglobulin and vaccine products making it resilient to economic downturns. This is because humans will require CSL’s lifesaving products, irrespective of what is happening with the global economy. Furthermore, if US interest rates rise (driving the US dollar higher), CSL should benefit given its large US earnings making the current bifurcation of global monetary policy a positive for it.

Accordingly, with the stock currently trading on a forward price-earnings of a touch under 25x, investors should look to buy this defensive stock before the current sell-off ends, in my opinion.

Telstra  

As Australia’s flagship telecommunications carrier, Telstra is a company which should endure any macroeconomic ups and downs, given humans require internet and telephony services during all economic cycles. With the stock currently down 14.5% since its recent highs in June, the prevailing share price offers investors a robust 6.2% fully-franked dividend.

This makes Telstra a reliable investment for any market conditions.

Foolish takeaway

Even if central banks have no artillery left to spur global inflation, the fact is that humans will still require essentials like blood and telecommunication services for their daily lives.

With CSL and Telstra both offering defensive exposure to the types of essential services unaffected by global downturns, wise investors should take the market-wide pullback as an opportunity to buy these two blue chip stocks.

3 Rotten Shares to Sell, and 1 to Buy Today

After a double-digit rally for the ASX since 2016 lows, investors should be on high alert. You'll find a full rundown below of 3 shares we think you should avoid today plus one top pick worth buying, even if the market turns south and the RBA keeps rates at an "emergency low." Simply click here to uncover these stocks.

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Motley Fool contributor Rachit Dudhwala owns shares of Telstra Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.