Global stocks began the week higher Monday while government bonds fell after Britain launched a second multi-billion rescue plane for its troubled banks and the incoming U.S. administration planned more measures to help the economy. Experts tell CNBC cash and diversification are key.
Diversify, Diversify, Divesify
The best way to reduce your risk amid the uncertainty is to diversify, says Riccardo Briganti, head of Research, Macquarie Private Wealth. Meanwhile, Chris Kimber, senior advisor at Bell Potter says investors should not miss out on any buying opportunities.
Is It Wise to Hoard Cash?
Investors in Asia Pacific have upped their cash levels, which suggests that they are looking at safety, according to a survey by ING Investment Management. Its regional head of equity, Nick Toovey tells CNBC if this is a wise thing to do.
Diamonds and gold look good, according to Clive Hyman, CEO of Hyman Capital Services Limited.
Gold is good in times financial crisis, according to Puru Saxena, CEO of Puru Saxena Limited. But he sees more opportunity in copper, silver and platinum.
Dismal Earnings Will Lift Dollar
Upcoming dismal earnings announcements may fuel greater risk aversion and lift the U.S. dollar, notes Licia Kok, treasury economist at United Overseas Bank Group.
Dollar-Yen May Test 85
There is a distinct possibility that dollar-yen may test 85, according to Claudio Piron, head of Asia FX research at JPMorgan. But he believes that yen intervention is not likely to happen.
Possible Selloff in Sovereign Bonds
The budget deficits of most Western countries have gone out of control, which could lead to a selloff in sovereign bonds, says Martin Hennecke, senior manager, private clients at Tyche.
HSBC May Plunge to HK$50 in Q1
Hong Kong-listed shares of HSBC could plunge as low as HK$50 this quarter, predicts Alex Wong, director of asset management at Ample Capital.