Time for Investors to Play Defense

Friday, 20 Jun 2008 | 8:09 AM ET

The markets will be facing volatility for the rest of year, so it's time for investors to stack their portfolios with defensive plays, money manger James Bevan told CNBC Friday.

"I think investors who think we're about to go back to the quiet times had better wake up and pay attention," James Bevan, chief investment officer at CCLA Investment Management, said on "Worldwide Exchange."

Defensive Plays for Volatile Times
During the ongoing volatility in the markets, James Bevan from CCLA Investment Management, suggests investors play it defensive and look at companies that trade in the emerging markets, like Heinz, Pepsico, P&G and Danone.

Those in the market should look for companies with quality balance sheets, good ratios of free cash flow to stock price and those capable of increasing their dividends, Bevan said.

"One of the good things about the equity selloffs is that the good stocks are being dragged down with the not-so-good" providing some good buying opportunities, he added.

Danone, Procter & Gamble , Pepsico and H.J. Heinz, all have global franchises and strong balance sheets, Bevan said.

Investor should also hold relatively high cash balances and short-dated bonds, he added.

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