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Dubai a 'Wake Up Call'—Expect Volatility Now: Market Pro

Monday, 30 Nov 2009 | 4:56 PM ET

Markets whipsawed on Monday as investors digested the Dubai news. Chief Executives Rich Berg of Performance Trust Capital Partners and Roy Williams of Prestige Wealth Management shared their market outlooks.

Market Insiders Sound Off
Insight on the markets, with Roy Williams, Prestige Wealth Management CEO; Rich Berg, Performance trust Capital Partners CEO; and the Power Lunch team.

“I’m concerned about the investor psyche more than the actual effect on our banking system,” Williams told CNBC.

“Investors were rocked last year with what happened with our financial crisis… The way investors can protect themselves is to make sure they don’t place bets—make sure they have a proper asset allocation, based upon their goals.”

Williams is worried that investors are being overly aggressive with their portfolios and may be too open to taking risks. He warned that now is not the time to place "bets" because of a lot of unknowns still out there.

Williams said he likes the technology sector and expects to see more M&A activities taking place in the future.

In the meantime, Berg said the Dubai crisis is a “wake-up call” and added there may be more "major headline risks" that could surface.

“With that backdrop, we need to be careful with any investment selection we make,” he said.

“I’m not sure there’s a whole lot you can do with the headline risks that come out of nowhere; and a lot of the times it’s because of a lack of transparency. We still really don’t know how troubled the credit markets are.”

Berg warned that December may be choppier than the last couple of months and investors should prepare to see some volatility.

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CNBC's Companies in the News:

Berkshire Hathaway

Goldman Sachs

Blue Nile

Bank of America

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Disclosures:

No immediate information was available for Berg or Williams.

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Disclaimer

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