Market Tips: Cash, Gold and Managed Futures
Global markets were mixed Friday ahead of the November nonfarm payrolls data out in the U.S. Crude fell almost 7 percent overnight as market volatility persisted. Analysts interviewed by CNBC give their views on where to invest.
Overweight on Cash
Be overweight in cash, advises Hans Goetti, CIO of LGT Bank in Liechtenstein. He believes the dollar is still the currency to be in as long as the deleveraging cycle continues.
Hot on Gold, Managed Futures
Equities should make up the smallest portion of your portfolio, says Johann Santer, MD at Superfund Financial. He recommends going overweight on managed futures and gold instead.
Red Chips Are the Flavor of the Day
With red chip companies expect to be in favor today, the telecom, energy and infrastructure-related sectors look the most attractive to Steve Tse, research manager at BEA Union Investment Management.
"Long" on Japan
John Alkire, CIO at Morgan Stanley Investment Management sees compelling valuations in the Japanese market and tells investors to go "long" on Japan.
Continue to Focus on Diversification
Investors should continue to focus on diversification, says Johann Santer, MD at Superfund Financial, as he thinks markets could fall further.
Commodity Prices Will Pick Up
We will eventually see a higher floor in commodity prices but with more volatility than experienced in the last 3 years, says Richard Gilmore, president & CEO of GIC Group, after soft commodity prices sank overnight.
Recovery Seen in Some of China's Sectors
In China, Jing Ulrich, MD & chairman of China equities at JPMorgan Securities has noticed a recovery within its property, coal and steel sectors.
Beware of Long-Term Sovereign Bonds
Beware of long-term sovereign bonds, advises Martin Hennecke, senior manager at Tyche, after he noticed many European countries withdrawing their bond options.
Russian Yields Ludicrously Attractive
The Russian stock market still has potential as it is one of the cheapest markets in the world, said Kingsmill Bond, chief strategist at Troika Dialog.
"Russian dollar-euro bonds are trading at ludicrously attractive yields. So you can buy Russian state bonds at about 11% yield… or you can start to buy quasi-sovereigns, like Transcredit Bank, which is about 20% yield," Bond told CNBC.
Investment Plays to Make Your Day
Investment-grade credit; bank bonds where those banks are semi-nationalized – where the risk there is very low indeed –; high-quality emerging debt like dollar-denominated Russian debt; high-dividend, underleveraged large-cap companies, which are almost recession-proof and are very cheap; and oversold emerging stock markets, notably Brazil and China – China as a play on fiscal expansion; Brazil as a bet on commodity prices forming a base - , are the investment plays Bob Parker, vice chairman at Credit Suisse Asset Management suggests.