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Analyst Watch: Portfolio Tips for Surviving Volatility

Friday, 2 Jul 2010 | 8:47 AM ET

Stock market futures indicated a slightly lower open Friday after investors largely shrugged off a report showing that the economy shed slightly more jobs than expected in June.

The government said the private sector lost 125,000 jobsfor the month and the unemployment rate dropped to 9.5 percent. The jobless rate itself was lower than expected but the total jobs shed was about 10,000 more than analysts had predicted.

Here's what guests on today's Squawk on the Street are watching before the opening bell:

Large Caps

With most major averages around the globe having broken important moving averages, corporate bond spreads widening and volatility indexes again rising, the likely scenario for markets is they will make big moves both up and down.

So where does that leave your portfolio construction?

The Bull

"We believe that most investors are best served today with what might be called a 'bullet-proof portfolio,' " John Merrill, founder and CIO of Tanglewood Wealth Management says. "One that takes all of the various risks and opportunities into consideration — covering all possible outcomes."

Tanglewood's portfolios contain:

  • Gold
  • US Treasury zero coupon bonds
  • High-Quality municipal bonds and corporate bonds

The Bear

Paul Schatz, president of Heritage Capital, says he thinks markets are moving toward a trading low in the short term that should result in a 5-10 percent summer rally.

"Anything I would buy would be for a trade into the summer and not an investment," he says.

He likes:

  • REITS
  • Semis
  • Transports
  • High-yield bonds
  • Emerging markets
  • Indonesia
  • Thailand

See more of what these and other analysts and money managers have to say, and get the latest financial news. Watch Squawk on the Street every weekday morning starting at 9 a.m. ET.

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  • Carl Quintanilla is an Emmy-winning reporter and co-anchor of CNBC's "Squawk on the Street," broadcast live from the NYSE.

  • Simon Hobbs co-anchors the 10 a.m. hour of CNBC's "Squawk on the Street" live from the New York Stock Exchange.

  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

  • Co-anchor of CNBC's "Squawk on the Street," David Faber also is a co-producer of CNBC's original documentaries.

  • Rick Santelli joined CNBC Business News as an on-air editor in 1999, reporting live from the floor of the Chicago Board of Trade.