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Pros Say: Bet on a Bull AND a Bear

CNBC.com
Friday, 15 May 2009 | 5:45 AM ET

Investors remain sharply divided on whether the recent stock market rally signals a return to a bull market or just a bear-market trap. The prospect of a 2-way bet makes many market watchers uneasy, but one expert told CNBC to prepare for all eventualities.

Prepare for Bull and Bear Markets

“People spend too much time worrying about where the market is heading rather than positioning one’s self in order to capture the response,” Gabriel Yap, senior dealing director at DMG & Partners Securities, told CNBC.

Regardless of whether you are a bear or a bull, investors should prepare for the inevitable moves away from current levels, he said.

Yap currently likes the “high-beta” sectors such as banks, real estate investment trusts and property companies.

Betting on Defensive Infrastructure

As general infrastructure investments will continue to see volatility, Andrew Yee, CEO of Standard Chartered's Asia Infrastructure Growth Fund, says defensive infrastructure stocks with significant exposure to Asia's growth are the best bets.

Landing Returns in REITs

Risks are much lower in REITs than traditional real estate companies, says Peter Churchouse, director of property at Lim Advisors. He tells CNBC how he is cashing in on REITs.

What to Include in a Model Portfolio

An model portfolio should include commodities and hedge funds. Salman Haider, MD & head of wealth management at Citibank Singapore tells CNBC's Martin Soong why he likes gold and fund of funds.

Gain Exposure to China via Taiwan & Hong Kong

Go underweight on China, advises Salman Haider, MD & head of wealth management at Citibank Singapore. He tells CNBC why he recommends gaining exposure to China via the Taiwan and Hong Kong markets instead.

Rally in Hong Kong Market Not Sustainable

Although Steve Tse, research manager at BEA Union Investment Management does not think the rally seen in the Hong Kong market is sustainable. He tells CNBC's Emily Chan why.

Contact Europe: Economy

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