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Market Tips: Corporate Bonds Better than Stocks

CNBC.com
Thursday, 27 Nov 2008 | 8:30 AM ET

With risk aversion still running high, corporate bonds will bounce faster than stocks, some analysts believe, while others are still bullish on China, which is seen as a defensive market.

Invest in Corporate Bonds

Corporate bonds will recover faster than equities, believes Paul Schulte, head of multi-strategy research Nomura International.

Wait for Risk Aversion to Subside

Global equities will do better when risk aversion goes down, says Jonathan Cavenagh, currency strategist at Westpac Banking Corp, told CNBC.

No Bargains amid Retail Stocks

"The only bargains are in the shops, not so much in terms of the stock market," Michael O'Sullivan, UK Research and Global Asset Allocation from Credit Suisse, told CNBC.

"Despite what on paper looks like attractive valuations (on retail stocks), I'm not tempted by the sector at all," O'Sullivan said.

"On a relative basis you might want to be going long on some of the lower-end retailers and short some of the higher-enders are people move down the value chain," he added.

Chinese Sanctuary?

China is seen as a defensive market going into the economic crisis, says Andrew Pease, investment strategist at Russell Investments, speaking to Geoff Wilson, portfolio manager at Wilson Asset Management.

WALL STREET IN CRISIS - A CNBC SPECIAL REPORT
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Bullish on China stocks

Stephen Gollop, CEO of Tyche explains why he is bullish on China's stocks.

Dollar May Still Be Strong

Volatility has come down recently along with gains in equities, but don't expect the end of the dollar's strength yet, says Olivier Desbarres, director in forex strategy at Credit Suisse.

Give Bonds Some Love This Christmas

"You've got to love bonds, all of them. All government-related securities to me look very attractive," Kevin Gaynor from RBS, told CNBC Thursday.

Contact Europe: Economy

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