Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES
CNBC Asia Pacific : Protect Your Wealth
Text Size
Oct.08
6:45 AM ET
Wednesday, 8 Oct 2008
Don't Go Bottom-Fishing
Posted By:CNBC.com

After looking at how badly Asian stock markets suffered today, investors might be tempted to jump back into equities. Afterall, a good bargain doesn't stop some from reaching into their pockets.

The Nikkei 225 dived 9.4% to log its biggest one-day percentage drop since Oct. 1987 and the Hang Seng Index plunged 8.1% on Wednesday. But if you think this is a good time for bottom-fishing, experts on CNBC Asia Pacific’s “Protect Your Wealth” segment say, think again.

“You should not be trying to pick which stock is going to outperform in a market where equities still needs to adjust in a massive way,” warns Kirby Daley, senior strategist of New Edge Group. "And just because we’ve broken 10,000 in the Dow doesn’t mean we can’t go to 8,000."

Investors should essentially “get out of equities and go to cash,” he emphasizes. He also notes that gold is also a safer bet than other asset classes.

His one favorite -- the Japanese yen. “We’ve missed a lot of the big move (but) I think we can still go to 95 yen and down toward 90 in the risk-aversion trade.”

Bearish as he is, Daley says that if investors must stay in stocks, then defensive sectors like healthcare, pharmaceuticals, consumer staples are probably better options. But he warns equities will possibly fall another 20%.

Catch "Protect Your Wealth" on CNBC's Asia Pacific network every Tuesday on "CNBC's Cash Flow," Wednesday on "Asia Squawk Box" and Thursday on "Capital Connection."


Comments? Questions? Send them in here.

© 2009 CNBC, Inc. All Rights Reserved

Tools:
PrintEmailAdd This share icon


Current DateTime: 02:07:26 10 Jul 2009
LinksList Documentid: 29778428

Current DateTime: 01:04:04 10 Jul 2009
LinksList Documentid: 29779196

Current DateTime: 02:18:56 10 Jul 2009
LinksList Documentid: 29779199

Current DateTime: 01:05:45 10 Jul 2009
LinksList Documentid: 29779198
CNBCCNBC
About CNBC  |  Site Map  |  Privacy Policy  |  Terms of Service  |  Video Reprints  |  Advertise  |  Help  |  Contact
Partners: AOL Money  |  BloggingStocks.com
CNBC is a Division of NBC Universal
  Data is a real-time snapshot *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
Thomson ReutersThomson Reuters