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Park Your Money in Asian Stocks & Bonds

Geraldine Tan|News Assistant, CNBC Asia Pacific
Friday, 4 Jun 2010 | 3:44 AM ET

As the extreme market volatility in May has started to creep into the early days of June, investors should protect their wealth by parking their money in high-yield Asian stocks and bonds, suggested Kelvin Tay, chief investment strategist, Singapore at UBS.

"We like the Asian high-yield stocks ... there is a lot of value there and the yields are actually attractive enough. In most cases, I think the yields are actually closer to six percent," Tay said on CNBC's Protect Your Wealth.

Asian bonds are also a good bet "given the strong corporate and economic fundamentals" seen in the region, he added.

Although the recent volatility was triggered largely due to the euro zone's debt woes, Tay said this is unlikely to spark a repeat of the 2008 market collapse following Lehman Brothers' bankruptcy, and will not have a huge impact on Asia.

"The euro zone is not a significant export market right now ... In terms of the composition of total exports for a lot of the Asian countries, it is not quite as significant as before," he explained. "A lot of the Asian countries right now are actually exporting within the region itself."

Next Stop for Gold: $1,500

Tay is also bullish on gold and expects prices to rise towards $1,500 an ounce in the next 12 months.

But he advised investors not to put too much money into the precious metal, as "the problem with gold is that it is hardly volatile", making it hard to buy in at a reasonable level.

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Comments? Questions? Send them in here.

Catch "Protect Your Wealth" on CNBC's Asia Pacific network every Tuesday on "CNBC's Cash Flow," Wednesday on "Asia Squawk Box" and Thursday on "Capital Connection."