Cash is King

Investors have been frantically rejigging their portfolios ever since the world witnessed violent swings in the stock market. Amid fears of a global recession, investors have been flocking to less volatile investments like cash.

“Cash is king. Warren Buffett has just come out and said that anybody who thinks cash is king is going to outperform stocks at this level,” Kirby Daley, senior strategist at the Newedge Group said on CNBC Asia Pacific’s “Protect Your Wealth” segment.

Daley, who prefers to stay out of equities entirely, says there are also good opportunities in the credit space. “There are lots of good corporate bonds out there, a lot of good convertible bonds, a lot of good municipal bonds.”

For the less risk-averse who prefer to make money by cashing in on downside opportunities in the market, Ron Ianieri, chief markets strategist at Options University says it is best to use options.

“For a long time, options have been vilified and the fact is that this is the exact type of market that tells every exchange in the world that we should have options,” Ianieri says. “They are the purest and only pure form of hedge.”

Ianieri stresses the importance of playing defensive and protecting what you have on the way down, so that when low levels are hit, you will have the cash to make good purchases.

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."