The last few days have seen an unprecedented spike in news reports on whether it is time to "buy the dip" or not.

h/t @DaniBurgr

But while CNBC "Markets In Turmoil" special was all-in promoting this as nothing but a "health pullback" and lone-wolf volatility event, Europe's largest asset manager is less optimistic.

Raphael Sobotka, who helps manage 45 billion euros ($56 billion) in invested assets at Amundi, warns that while the latest pullback should wipe off some of the recent exuberance in equity markets, investors need to let the dust settle first on this "volatility shock."

As Bloomberg reports, Sobotka, who heads the flexible, risk premia & retirement solutions unit at Amundi, said in an interview.

“Tactically, we had been reducing our exposure to equities since December, and we further sold stocks over the past week,”

The equity exposure of our flagship fund, Amundi Patrimoine, is now 26 percent, down from 35 percent at the market peak in late January, and 40 percent at the end of last year.”

U.S. stock valuations have fallen back, Sobotka said, but...

"...the market isn’t cheap yet, and given that rates will continue to rise, the pressure on equity valuation ratios can continue to increase from here.”

So far, US equities retraced around 50% of the losses before crashing yesterday...