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Buy and Hold Through the Volatility

Volatility has become the norm. Markets tank one day and surge the next. Just look at the action on Wall Street the past week! The wild swings are definitely not for faint-hearted investor. And it's likely that the rollercoaster ride will continue well into 2010.

"(Markets) fluctuate when recession is deemed to be over and when the market bottoms. We don't see a bottom for the markets until the Fall, and in the economy until 2010," Robert Howe, CEO of Geomatrix said on CNBC Asia Pacific's "Protect Your Wealth".

Despite the dire prognosis, he still sees some opportunities in equities, due to their attractive valuation. Howe recommends two stocks that he currently owns -- Beijing Enterprises and Chaoda Modern Agriculture.

He warns that investors though could still face the risk of “premature accumulation” – Howe has suffered a loss on Chaoda Modern Agriculture. The stock price has fallen about 25 percent since he bought it a week ago, but he's looking to buy some more.

“We’re trying to buy things that we’d be happy holding, rather than getting into something for a bounce even if it’s a 50 percent move, then have to time the exit in two weeks or three day,” revealed Howe.

Though the experienced fund manager admits it's hard to do that in the current environment, he has noted a trend: deeply oversold stocks tend to rise on a bear-market bounce, while financials jump on any rally.

And if all that volatility is too much for you to bear, just stick to gold. Howe believes that the precious metal is a good investment over the next 12 to 18 months.

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."