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What to Buy on the Way Up

It's midway through 2009 and Asian markets are all in the black, with Hong Kong's Hang Seng Index and Singapore’s Straits Times Index up almost 50 percent from their March lows.

The sharp rise has prompted naysayers to warn that this is just a bear market rally. But Terence Khoo, Asian fund manager at Sofaer Capital, believes that this is actually the beginning of a bull run.

"Most people are very bearish. And usually when there's a consensus of people calling for a correction, it never really happens," he said on CNBC Asia Pacific’s Protect Your Wealth.

Khoo has adopted an aggressive strategy, with his portfolio almost fully invested in stocks. However, for faint-hearted investors, he recommends shorting some sectors and buying some put options to guard against any downside.

Chinese financials like ICBC and China Construction Bank are his top picks, as they are reasonably cheap. Their strong balance sheets, potential for growing net interest margins, as well as expansion in earnings due to strong loan growth in China also make them good buys.

He is overweight on Hong Kong and China, while recommending going long on Australian, Chinese and Indonesian commodity plays.

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."