Back to Basics
Focus on defensive plays like companies in the consumer staple, utility and telco sectors, advises Clive McDonnell, regional strategist at BNP Paribas Securities.
Bailout Means Bonds Buying
World governments are going to do whatever it takes to save the banking system, and part of that is to insure a steeply sloping yield curve, leading the investor to buy short to medium government dated bonds of the highest quality, like the U.S. 2-year Treasury note, according to Robin Griffiths, technical strategist at Cazenove Capital.
"The capitulation low is virtually in place, it will be there by the end of the month, it almost certainly will be there this week," Griffiths said when looking at the Shenzhen Composite chart.
Griffiths also believes that Asian emerging markets should be the first place investors put their money before investing in Western markets.