Is It Time to Up Your Portfolio's Risk Level?

Wall Street locked in its seventh straight session of gains. Positive U.S., European and Asian economic news emerged –– the first in many months. Is this a signal to jump into riskier assets as the global economy gets back on the path to recovery?

The answer is yes ... if you are a long-term investor with a diversified portfolio, as the cheap valuations are hard to ignore. But here’s the catch -- economic recovery may not happen as quickly as you think.

“Do not expect the U.S. economic recovery before the end of the year, and even that, recovery will be a crawl rather than a sprint,” warns Lim Say Boon, chief investment strategist at Standard Chartered Group Wealth Management, on CNBC Asia Pacific’s "Protect Your Wealth".

With that caveat, Lim goes on to say that he sees opportunities arising in commodities and equities, as prices are low, relative to what was seen over the last two decades.

“If you look at commodities, there are Commodities Research Bureau indexes back to 2002 (levels). If you look at stocks, they’re back to 12-year lows … but the question is how much of this is already in the price? And if you look at the so-called economic surprise index, that has rebounded off a cyclical low from late last year and it’s coming back up again.”

That upward momentum in the index could point to a recovery in the global economy, as the uptick happens when economic reports increasingly surpass consensus estimates.

To balance out these riskier assets, he recommends holding some government bonds, like U.S. Treasurys, as well as gold. However, Lim believes that gold's rally has been overdone and it is going through a period of consolidation. He advises buying gold at around $850, in anticipation that prices will surge to $1,000 by year-end.

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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."