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Diversify Your Portfolio

Volatility is the name of the game for Asian markets as many indexes move into unchartered territory. In such uncertain times, experts say diversification is the key to stabilizing your porftolio.

Kirk West, Asia MD at Principal Global Investors noted that a common trend among Asian investors is to put all their eggs in one basket. But as volatility continues to dominate the trading theme, he said the best thing investors can do is to have a diversified portfolio which includes a cash component.

"I think going forward you will start to see a more diversified portfolio construction which I think is a good thing," West said on CNBC Asia Pacific's "Protect Your Wealth" segment.

(Watch full interview at left)

By diversifying your portfolio across all sectors, West said investors are able to see real opportunities, even in unfavorable areas. "Some of those more unloved sectors such as materials, such as the industrials, such as certain elements of the financials, they really are now starting to show quite compelling valuations in certain stocks," he said.

West also added that exporters can add value to one's portfolio, but he noted that this is specific to certain countries. Using Australia as an example, he said the significant appreciation of the Australian dollar (till mid-2008) gave such companies an advantage. "That's obviously going to assist exports so that really comes down to a country-by-country analysis."

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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."