The stock market is enjoying a strong rally despite persistent weakness in the global economy. But investors should be looking to buy corporate credit, one expert told CNBC, even of companies that don’t have an investment-grade rating.
Playing Corporate Credit
“Spreads are still astronomically high by historical standards. I’m quite happy having a very low rated credit portfolio, BBBs and lower,” Richard Cookson from HSBC told CNBC.
“I’m relatively bullish on commodities, if you’d said, 'in the aftermath of the greatest financial crisis the world has ever seen that WTI or Brent would be over 60 bucks a barrel,' you’d have been laughed at. I think there are some severe contrasts on the supply side when it comes to energy,” Cookson added.
Buying Opportunities Abound
It's the buying opportunity of a lifetime, believes Graham Bibby, managing director at Richmond Asset Management. He tells CNBC why he remains upbeat on financials, semiconductors, uranium and fertilizer stocks.
Hang Seng Index Will Test 18,500 Points
Peter Lai, director at DBS Vickers Securities, says the Hong Kong market has risen too much and so the upside is limited and it’s not a good time for long-term investors to buy in.
Clear Rebound Seen for Asia in 2010
A clear economic rebound is seen for Asia in 2010, says PK Basu, chief economist, Asia ex-Japan at Daiwa Institute of Research. He shares his outlook for Asian economies, with CNBC.
Buy This Gold Miner
Tim Morris, equities analyst at Wise Owl, tells CNBC why gold-miner Kingsgate Consolidated is a "buy".
Yuan Weakness is Dollar-Related
Dollar weakness actually tends to translate to a weaker trade-weighted yuan, notes Sean Callow, senior currency strategist at Westpac Bank. He speaks with Franklin Lavin, former White House political director.