What the Pros Say: Gold Still Going to $2,000
Stock markets across the globe soared as world governments announced plans to recapitalize banks.
The Dow Jones Industrial Average had its biggest one-day point gain in history, jumping 11 percent. Tokyo's Nikkei followed that up with a 14% surge, while major indexes in Europe added to strong gains seen Monday.
But should investors jump into this rally with both feet or stick to commodities, bonds and other safe havens? Market experts from around the world weigh in with their advice.
Gold Will Still Shine
"Gold will be through $2,000 some time in the next 18 months, we are going to have the most almighty inflationary ramifications for what's going on," Philip Manduca from ECU Group said.
Global Recession 'Inevitable'
Global Recession 'Inevitable'
Despite the measures by governments worldwide to boost their economies, the global economy will contract, said Shane Oliver, head of investment strategy & chief economist at AMP Capital Investors.
Stick with Commodities?
Is the commodity bull run still intact?
David Darst, chief investment strategist at Morgan Stanley Global Wealth Management and Marc Faber, editor & publisher of the Gloom, Boom and Doom Report offer their takes.
Investors should look at investing in frontier countries like Ghana and Mongolia as they are desperate for funding and growing swiftly, according to Dr. Peter Stowe, former chairman of Labour Finance and Industry.
Stowe suggests looking investing in infrastructure in Africa ahead of the 2010 Soccer World Cup in South Africa.
Making the Brave Call
"It would be a brave person to say the worst is over, but I'll be that brave person. I think we have made that bottom now. We got to a blind state of panic through last week," Stephen Pope, chief global market strategist at Cantor Fitzgerald Europe, told CNBC, adding that it won't be a straight line to the upside.
"If we can sense that the Libor rates are coming down, there is an un-gumming of that Interbank lending market in Asia, Europe and the United States. Then I think you'll find people will start focusing upon more mundane matters such as how the earnings are going to be," Pope said.
Beaten Stocks Provide Opportunities
We're focusing on some of the areas of the market that have been the most beaten down, such as energy, especially energy-service stocks; infrastructure and companies that we see valuations in extreme oversold conditions, Eric Marshall from Hodges Capital Management said.
Companies with good long-term fundamentals are still the best places to invest. Look for companies with solid balance sheets, that have the ability to fund themselves through internal cashflow, and are in markets that aren't overly sensitive to discretionary spending at the consumer level, according to Marshall.
"Long-term, we're finding a lot of opportunities in small-cap stocks which, when a new cycle does emerge, typically lead the market," Marshall said.