The global wave of selling sweeping world markets could be nearing its end, despite signs of “contagion and panic” among investors, one expert predicts.

"It seems more like contagion. What started off as, really, a healthy correction has turned into an oversold situation with some elements of panic," Kristina Hooper, U.S. investment strategist at Allianz Global Investors, told CNBC on Thursday.

To be sure, contagion is not spreading to the real economy, but within markets themselves, she said. While she thinks the United States is likely to avoid a recession, equity valuations no longer look stretched and stocks are now starting to look more attractive, CNBC reported.

The market needs big buyers to start capitalizing on the price slide in order to turn around, she said. That could happen relatively soon, but probably not in the next few days, she told CNBC.

Globally, stocks fell sharply on Thursday. The dollar hit a 16-month low against the yen and investors migrated to gold and top-rated bonds. U.S. Treasury security yields plunged to levels not seen since 2012 in some cases.

"The market is transitioning and attempting to stand on its own two feet. Central banks in general have been the market's protectors over the last 8 years," Jack Ablin, chief investment officer at BMO Private Bank in Chicago, told Reuters.

But other experts see the sell-off only getting worse.

"I don't think there's too much selling at all. I think there's going to be even more selling going on," Dennis Gartman, the founder and publisher of "The Gartman Letter." told CNBC's "Worldwide Exchange" Thursday. "Sovereign funds are in the process of liquidating. They have no choice."

"I'm afraid it's going to get even worse. I hate to say that. There's not a good tenor to be found anywhere," Gartman said.

(Newsmax wire services contributed to this report).

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