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Selecting the Right Stocks

Uncertainty is the only constant for investors, as the markets will be rocked by more volatility and deleveraging in the months ahead.

But don't shy away from stocks and just park your money in government bonds because they are seen as the most secure. Kirk West, Managing Director of Asia at Principal Global Investors, says that while fixed income instruments make up an important component of one's overall portfolio, they are not the best way to protect an investor's wealth long-term. He believes there are worthwhile opportunities in equities.

"We believe stock selection is where you produce your alpha. For example, most of our portfolio is tilted towards more defensive plays or companies with good domestic earnings and pricing power," West says on CNBC Asia's "Protect Your Wealth" segment.

Kirk is overweight on telcos, healthcare, utilities and consumer staples. He also likes selected industrial and financial counters.

"There has to be value in some high beta stocks, both in the industrial and the financial sectors where they...are priced for bankruptcy but a lot of those companies are not going to go under," he adds.

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."