Stock market volumes rose Tuesday as investors cautiously moved some cash from bonds to stocks in search of higher returns. But with the future still unclear, and fears of the early 2009 gains being short-lived, there is still a substantial amount of cash in investors' portfolios.
Where should you invest? Experts tell CNBC.
Avoid a "Buy & Hold" Strategy
Be cautious of adopting a "buy and hold" strategy in anything, advises Arjuna Mahendran, MD & head of investment strategy, Asia at HSBC Private Bank. He also reveals how he is investing in these tough times.
Avoid Underexposure to Stocks
Although Daphne Roth, head of equity research, Asia at ABN Amro Private Banking is underweight stocks, she cautions investors to avoid underexposure too.
Decent Returns Can Still Be Found
One can still find decent returns in high rate corporate bonds, inflation-linked bonds and cash-rich companies, says Daphne Roth, head of equity research, Asia at ABN Amro Private Banking. She reveals her top picks in this installment of "Protect Your Wealth".
Positioning for a Bear Market Rally
The likelihood of a bear market rally during the early part of this year has increased, according to Hans Goetti, CIO at LGT Bank in Liechtenstein.
We are Nowhere Near the End
We are nowhere near the end, believes Ron Ianieri, chief markets strategist at ION Options, as the troubling factors in the U.S. economy have not been resolved yet.
All That Shimmers is Gold
The safe haven status of gold is starting to shine brighter and brighter, according to Jurg Kiener, CEO of Swiss Asia Capital. He explains his bullish outlook on the precious metal.
US Housing Market Will Recover - Slowly
Figures over the last few months suggest we are approaching a base for the U.S. housing market. But it won't be quick, recovery will only gather momentum into 2010, Neil Parker, Treasury economist at Royal Bank of Scotland said.
Ahead of the U.S. nonfarm payrolls data out Friday, Parker predicts a loss of 500,000 in the country for December.
US Won't Be the Engine of Global Growth
As global inflation eases, Stephen Gallo, head of market analysis at Schneider Foreign Exchange, said he is worried about the dollar for 2009 and 2010. He predicts that the euro taking a beating in the first quarter of this year, but warned that the dollar's strength will run out of steam late '09.
Gallo also said the tim of global export-growth is over. "The United States driving world growth through imports is over," he added.