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Put 70-80% of Your Money Into Equities: Strategist

Thursday, 22 Apr 2010 | 11:29 AM ET

The next place for global investors is in U.S. equities, said Vasu Menon, vice president of wealth management Singapore at OCBC Bank. He shared his market outlook.

Bullish on US Equities
Investors should put 70-80% of their money in the equity markets says, Vasu Menon, vice president of wealth management Singapore at OCBC Bank. He tells CNBC's Chloe Cho and Anna Edwards why investors should put their money in US equities.

“In the U.S., we see the recovery kicking in and we’ve moved from underweight to neutral,” Menon told CNBC.

Menon said he is bullish on the equity markets—especially Asia, ex-Japan because he expects "a lot of upside" and sees valuations that are "reasonable." He is also medium-term bullish on the commodity sector.

“We suggest investors put as much as 70 to 80 percent of their money into equity markets, if they have the appetite for risk,” he advised.

Menon said investors have been cautious on the markets, despite positive corporate earnings news.

“Markets have been expecting a lot of companies to report pretty good earnings and so, to some extent, it’s been discounted and the markets have had a good run for the last 4 to 5 weeks, so it’s normal for markets to take a breather,” he explained.

“And the news flow out of China and Greece are providing a good excuse to take some money off the table.”

“But I wouldn’t worry about it, because we’re still positive in the medium-term.”

  • Watch Menon's Previous Appearance on CNBC (Apr. 15, 2010)

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Thursday Earnings After the Bell:

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Microsoft

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Disclosures:

No immediate information was available for Menon or his firm.

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