Stock markets rose across the world Friday, rebounding from two days of losses. Investors have shifted their attention from the volatile financial crisis to the prospect of a global recession.
CNBC's experts weigh in on the worst case scenario and where to find safety in the yo-yoing markets.
Worst Case Scenario
If the world slips into a severe recession, global GDP could fall as much as 10% over a number of years, says Christoffer Moltke-Leth, head of sales trading, Asia Pacific at Saxo Capital Markets.
Volatility to Continue
Volatility is going continue for the rest of the year, believes Michael Yoshikami, founder, president & chief investment strategist at YCMNet Advisors.
Recession: How Long, How Deep?
We're going to definitely shrink about 2% in the current quarter, if not possibly at twice that pace. Stocks could possibly bottom sometime in the next couple of months, depending on the economy not being much weaker past the first quarter of next year, Joseph LaVorgna from Deutsch Bank predicts of the economy.
Commodities to Slump Further
The recent selloff in commodities is set to intensify and could cut another 30% to 40% from the Goldman Sachs Commodity Index, Phil Roberts from Barclays Capital told CNBC, adding oil could slump toward $50 a barrel.
History Says Don't Give In
We are in a recession and historically, when you find yourself in a recession, getting out of stocks is really a bad idea, Ernie Ankrim from Russell Investments told CNBC, although he warns investors to stay away from oil.
Treasurys don't offer too much to the upside, Ankrim added.
What Will Withstand the Turmoil?
With such wild swings seen on Wall Street almost a daily affair, how does one invest? Michael Yoshikami, founder, president & chief investment strategist at YCMNet Advisors thinks there can be good opportunities when fear and panic reign in the markets, like heavyweights Johnson & Johnson and McDonalds.
Buying into Bonds
Billionaire and investor Warren Buffett says he is getting back into American stocks, but is it the right time? Laurent Fransolet, head of European interest rates strategy at Barclays Capital still sees opportunities in the European bond market.
Still Stay on the Sidelines
The S&P 500 index is still in a downtrend for the short term, however, the Nikkei 225 Average is close to a recovery, Royce Tostrams, technical analyst at Tostrams Groep said Friday, adding that both markets are far away from buying levels.
Look for Big Names
The world's on sale right now and investors should invest in the companies with big bank accounts and big cash, like tech giants Microsoft, Oracle, Google, Dave Maney from Headwaters MB said.
Look for big names, Stefan Abrams from Bryden-Abrams Investment Management, added.
Asian Stocks Seen Rebounding Soon
The Asian stocks have already hit their bottom, thinks Daniel McCormack, equity strategist at Macquarie Securities. He tells CNBC that in the next six weeks, Asian stocks could do reasonably well.
Chinese Stocks Have Bottomed
Craig Russell, chief market strategist, China at Saxo Bank believes the Chinese stock markets have bottomed. He tells CNBC that the Shanghai Composite could trade as high as 2,500 by year-end.
Top Picks in Asia Pacific
In the Asia Pacific region, Mark Matthews, chief Asia strategist at Merrill Lynch is heavily overweight on Australia, Hong Kong and China.
Aussie Dollar to Weaken Further
The Aussie dollar could weaken against the greenback over the medium-term, predicts Richard Grace, chief currency strategist at Commonwealth Bank of Australia.