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What the Pros Say: S&P to 1,100, Gold to $850

CNBC.com
Thursday, 6 Nov 2008 | 9:44 AM ET

Another day in the red for global markets with Asian stocks down heavily. Hong Kong and Japan sold off more than 5 percent and European markets opened over 2 percent lower, as economic fears dominated trade.

Some experts tout defensive strategies, but others see blue-chip rallies in the making.

S&P Poised to Take Off

The S&P 500 index may move toward 1,100 and maybe higher by the end of the year, according to Christopher Locke from Oystertrade.com. Locke expects gold to possibly fall further in the near term, but rise back to the $850 level by year end.

Beware of Sharp Turns in S&P 500

The S&P 500 index is to head higher from here for the short term, but be careful of the "exceptionally sharp turns", Tom Hougaard, chief market strategist at City Index, said. However, if the index falls below 900, then the Dow could hit 6,930 by mid-December, Hougaard warned.

"If gold ever comes back down to ($) 650, I will be buying again for my long-term portfolio," Hougaard told CNBC.

Hougaard also said he was looking at investing in water.

Continue to Stay Defensive

Continue to stay defensive, says Karma Wilson, head of Asia equities at AMP Capital Investors. She highlights sectors like consumer staples, utilities and telcos.

Risk Aversion May Return

Magnus Prim, chief strategist Asia, trading strategy at SEB Merchant Banking believes risk aversion might spike back up.

Moving into Big Caps

Geoff Wilson, director at Wilson Asset Management has switched from investing in small caps to big caps.

Great Value in Large-Cap Stocks

A lot of the market lows were set in October, but we may still have a rocky ride, Bill Knapp from MainStay Investments warned Thursday. Knapp is overweight on large cap equity growth as "pretty much everything is very cheap right now".

Watch Credit Markets for Start Signal

Value will emerge first in the credit markets because it is a credit crisis to begin with, believes David Roche, global strategist at Independent Strategy Ltd. He reveals how he is investing in the bonds.

Look at Undamaged Sectors

"We are bouncing along the bottom here. And I think that the downside is fairly limited and investors who allocate capital to the strongest sectors of the economy, those sectors which have not been damaged by this credit crisis are likely to do very well over the next 4 to5 years," Puru Saxena, CEO of Puru Saxena Wealth Management said.

Upside for US Property Sector?

It was the U.S. property bubble that sparked the ongoing global credit crisis but Tim Murphy, MD at IP Global sees some upside in the sector over the next 6 to 12 months.

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