With risk aversion still running high, corporate bonds will bounce faster than stocks, some analysts believe, while others are still bullish on China, which is seen as a defensive market.
Invest in Corporate Bonds
Corporate bonds will recover faster than equities, believes Paul Schulte, head of multi-strategy research Nomura International.
Wait for Risk Aversion to Subside
Global equities will do better when risk aversion goes down, says Jonathan Cavenagh, currency strategist at Westpac Banking Corp, told CNBC.
No Bargains amid Retail Stocks
"The only bargains are in the shops, not so much in terms of the stock market," Michael O'Sullivan, UK Research and Global Asset Allocation from Credit Suisse, told CNBC.
"Despite what on paper looks like attractive valuations (on retail stocks), I'm not tempted by the sector at all," O'Sullivan said.
"On a relative basis you might want to be going long on some of the lower-end retailers and short some of the higher-enders are people move down the value chain," he added.
China is seen as a defensive market going into the economic crisis, says Andrew Pease, investment strategist at Russell Investments, speaking to Geoff Wilson, portfolio manager at Wilson Asset Management.