Pros Say: Huge Returns for a Kamikaze Portfolio
Global stocks fell Wednesday, tracking Wall Street's overnight slide, as poor earnings from Alcoa sparked concerns about other corporates. Experts tell CNBC that despite the volatility, there are still "amazing" opportunities out there.
Kamikaze Stocks Offering Amazing Returns
Clem Chambers, CEO at ADVFN is still bullish on risky stocks. "My kamikaze portfolio is doing amazingly well. What's happening is people are switching out from low risk, which has high weighting in the indices, to high risk, which is low weighting on the indices, so that's actually keeping the main indices back. But under the hood, down in the high risk area, there's explosive rallies going on there. So if you're in the sort-of dodgy end of stocks, you're seeing amazing gains," he said.
Positioning for Multi-Month Advance
Expect a multi-month advance as Puru Saxena, CEO of Puru Saxena Wealth Management believes the market has already absorbed most of the bad news.
Gold Should Be Treated as an Insurance
Gold should be treated as an insurance against financial assets going down, says V. Anantha Nageswaran, CIO of Bank Julius Baer. He tells CNBC's "Protect Your Wealth" that we would need this "insurance contract" for at least 2 more years.
Worldwide Toxic Debt Unlikely to Hit $4 Tn - Maybe $3 Tn
Worldwide toxic debt is unlikely to hit the IMF's forecast of $4 trillion, says James Shugg, senior economist at Westpac, as he expects something around the $3 trillion mark.
More Stimulus Needed
V. Nageswaran, chief investment officer at Bank Julius Baer, is expecting more stimulus spending from the U.S. and Europe.
GM Can't Avoid Bankruptcy
Joe Magyer, senior analyst at The Motley Fool says bankruptcy for General Motors is a matter of time. He also tells CNBC that markets should brace for disappointing earnings as the reporting season kicks in.
The Decoupling Debate
Although Asia was not decoupled from the U.S. on the way down, it has decoupled during the recovery process, notes V. Anantha Nageswaran, CIO at Bank Julius Baer.
Hedge Against Inflation
Joe Magyer, senior analyst at The Motley Fool says one way to hedge against inflation is to buy Asian currencies and oil-related stocks. He expects oil to rise to the $75-level by end-2009 if the dollar softens substantially.
Lower Rates for Australia Expected
Expect further down side in interest rates for the RBA, says Rhonda Staskow, senior currency analyst at Action Economics. She tells CNBC that employment will deteriorate.
Japan's Stimulus Efforts are Positive for Stocks
The BoJ's move to improve liquidity, coupled with the government's fiscal stimulus packages, will be positive for equities, Pearlyn Wong, investment analyst at Bank Julius Baer said. She tells CNBC what are some of her top picks there.
Bear Remains Until Economic Recovery
Global stock indexes failed to break out of the long-term downtrend during the recent market rally and will remain weak until the economy recovers, Nick Parsons from National Australia Bank told CNBC.