Since the dramatic stock-market declines of last year and the whip-saw volatility that has followed them, the investment mantra of "stay defensive" has been widespread as investors strive to protect their wealth. But the temptation of strong gains is luring some to add riskier stocks to their portfolio.
Be Safe or Play Dangerously?
“If you think you’re at the bottom of the market and like to pick stocks, you should go for the highly volatile ones. They are the ones that are going to whip round if you go into a rally and make big returns,” Clem Chambers, CEO of ADVFN, told CNBC.
Investors that are worried about the state of the market should go for an exchange traded fund instead, Chambers said.
Chambers spoke to CNBC about which sectors are good picks for investors who are playing safe, or taking risky investments.
Go for Diverse Companies
Invest in diversified companies like BHP Billiton and Rio Tinto, says Lucinda Chan, divisional director Macquarie Financial Services.
Go with Healthcare & Consumer Staples
Telecom and other infrastructure-related plays will be affected as emerging markets come under stress, says Arjuna Mahendran, managing director and head of investment strategy for Asia at HSBC Private Bank.
Flying Safe with Qantas
Unlike other airlines, Qantas' dual brand strategy means it is well-places to withstand declining demand and volatile markets. Andrew Miller, CEO and principal of CAPA Consulting, examines Qantas in more detail.
Playing Defensive Aussie Stocks
Matt Williams, portfolio manager at Perpetual tells CNBC and James Holt, vice president of Black Rock Investment Management, that his defensive buys are Telstra, Orgin Energy and New Hope.