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Nikkei Shoots to Fresh Highs After US Rally

Take a Bite of Tech

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Published: Wednesday, 12 Nov 2008 | 2:39 AM ET
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The volatility in the current climate can leave a seasoned investor disheartened, and the less experienced seeing stars. For those who dare to brave the storm and source for bargains, don't forget the emerging markets.

Jonathan Garner, global head of emerging markets strategy at Morgan Stanley looks for companies with strong balance sheets and likes high-yielding tech stocks in Taiwan, such as TSMC and Acer.

"In previous cycles, tech can be one of (the) best performing sectors. Tech tends to be (affected earlier in a) cycle, we've had a wave of downward revisions much earlier, we are now looking at a wave of downward revisions in energy and mining. Look back at 97-98 when oil was falling rapidly like it is now, that releases discretionary spending," explains Garner on CNBC Asia Pacific's "Protect Your Wealth" segment on Wednesday. "Techs tend to hit valuation floors earlier than others. We are warming up to techs."

Emerging Markets: Last In, First Out?
Jonathan Garner, global head of emerging markets strategy at Morgan Stanley thinks the emerging markets, especially EM Asia, have a good chance of being last in and first out. He reveals how best to play in this space.

Garner adds that if an investor prefers to keep cash in his portfolio, go for currencies from countries with solid current account positions.

Garner is upbeat that the measures taken by the various Asian economies to tackle the financial crisis and the global slowdown will bear fruit.

"I think in the western world, we've come to an end of 25 years of leveraging on consumers, major property bubbles and an overstretched finacial sector. North Asia is at the opposite end. It is still quite early in the development process particularly in China. With this amount of self-help there's a good chance these economies could come back to good footing quicker through their own domestic demand than the U.S.," says Garner.

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."

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The volatility in the current climate can leave a seasoned investor disheartened, and the less experienced seeing stars. For those who dare to brave the storm and source for bargains, don't forget the emerging markets.

   
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