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Flu Selloff a Good Time to Enter the Market

An outbreak of swine flu in Mexico has kept equity markets on edge over the past few days. Investors fear the virus will make an express round-the-world trip, and along its way, kill off any signs of a global economic recovery.

Sani Hamid, director of wealth management at Financial Alliance, says based on what happened during the SARS crisis, stock markets lost about 14 percent over a four-month period and bottomed out in March 2003.

"So if you used those assumptions itself, what you'll be seeing is about 14 percent decline and markets bottoming out somewhere in August. So that's the base case that we see now," he adds.

Hamid advises investors not to let uncertainties surrounding the flu virus distract from their longer term goals. Instead, he suggests using market weakness as buying opportunties. He believes now is a good time to pick up stocks as equities are unlikely to revisit the lows seen in March 2009.

“If one has a longer term focus, say two, three or four years, then one has to see it in a bigger perspective, and ask yourself if this really is the time to invest, because if one has a three-to-four-year perspective, I'm pretty sure the markets will be much higher,” says Hamid on CNBC Asia’s “Protect Your Wealth”.

Hamid highlights the importance of dollar cost averaging, or buying in installments, as a safer approach to investing in such volatile market conditions.

“If the market comes down, I do believe this is a very good time for them (clients) to be picking up and filling up their portfolio until a hundred percent,” he says, “I think we're going to see a pretty nice rally, at least that's what we expect."

Hamid is overweight Asia because he believes “the prospect for Asia coming out of this crisis is much more than that of Europe or the U.S.” Funds he likes include Aberdeen Singapore Equity fund, DWS China Equity Funds and First State Global Infrastructure Fund.

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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."