Market Tips: Go Long on Volatility
Global stocks were mixed Wednesday, with European shares gaining as banks performed strongly off the back of a report that global regulators are considering delaying the implementation of new capital rules.
Experts told CNBC that investors should go long on volatility in 2010 as the theme will persist next year.
Go Long on Volatility
In 2010, Paul Heffner, CEO of Gen2 Partners, advises investors to go long volatility. He also sees great opportunity for private credit right now.
The VIX volatility index is trading "at the low end of the range," he said. "If I go 'long' volatility, that means if the markets go up and down, I have a way to hedge my long only exposure. So it has non-correlation to the broader equity markets."
Investors can trade the VIX through commodity trading advisors, funds and private banks, Heffner said.
Reduce Long-Only Exposure in Asia
Paul Heffner, CEO of Gen2 Partners, is recommending his clients to take out some of their long-only exposure in Asia.
Chinese ADRs Are Short-Term Plays
Dodge Dorland, chief investment officer at Landor Capital Management says Chinese ADRs (American Depositary Receipts) will face volatility and they offer short-term trading opportunities.
Don't Underestimate Dollar Strength
The dollar strength is a serious problem for commodities and should not be underestimated, says Mark Hansen, director of trading at CPM Group.
Concern Over US Service Sector
If the momentum in the U.S. market is sustained, manufacturing will follow suit, says Kathy Lien, director of currency trading at GFT Forex. But she tells Simon CNBC she is more worried about the service sector.
Gold a Good Buy
Buy gold if you are able to access the inflation market, Stephen Ellis, client advisor at Patersons Securities.
Outlook for Coal
Adam Worthington, associate director and head of utilities & coal, Asia at Macquarie Securities Group, is very positive on coking coal and thermal coal.
Up Exposure to EM Equities
Increase holdings in emerging market equities, either directly or indirectly, suggests Daphne Roth, Asia head of equity research at ABN Amro Private Banking.
Bet on HK Exporter Stocks
Hong Kong exporter stocks are likely to do well towards year-end, believes Alex Wong, director of asset management at Ample Capital. He tells CNBC why and what other sectors will outperform going forward.
Investing in Cambodia
Douglas Clayton, managing partner & CEO of Leopard Capital, sees vast upside for the Cambodian market. He tells CNBC what kind of opportunities this frontier market offers.