The dollar rose on Friday after Federal Reserve Chairman Ben Bernanke indicated monetary policy could be tightened as a recovery takes hold, sending commodities prices lower. Experts told CNBC the economic recovery is not sustainable and urged investors to hedge their bets now.
There Isn't a Sustainable Recovery Coming
There isn't a sustainable recovery coming, warns Kirby Daley, senior strategist at Newedge Group. He paints two possible scenarios that could happen in the U.S. next year.
Hedge Your Bets
For investors who have reaped stellar returns from the market rally, be sure to hedge your bets, say Ron Ianieri, chief market strategist & senior option trader at Tycoon Research & Kirby Daley, senior strategist at Newedge Group.
Hedge or Sell Out
The market rally is not sustainable and investors who are long should hedge against the risk, says Ron Ianieri, chief market strategist and senior option trader at Tycoon Research. Kirby Daley, senior strategist at Newedge Group suggests taking profits instead.
Adopt a Pro-Cyclical Investment Strategy
As Fan Cheuk Wan, MD & head of research, Asia Pacific at Credit Suisse Private Banking Division, believes we are still in the early phase of the recovery stage, she advises investors to continue to adopt a pro-cyclical investment strategy.
Stay Long on Asian Equities
Continue to stay long on Asian equities, advises Fan Cheuk Wan, MD & head of research, Asia Pacific at Credit Suisse Private Banking Division.
Asia — A Good Earnings Story
Asia no longer cheap but still makes a good earnings rebound story, says Andrew Pease, investment strategist at Russell Investment Group. He tells CNBC why he is upbeat on cyclicals, and on investments in Hong Kong, Singapore and Taiwan.
Positive on China
Simon Godfrey, investment specialist for Asian equities ex Japan at Fortis Investments, is positive on China due to the country's strong domestic demand and the infrastructure projects.
Upbeat on Asian Bonds
The outlook for the Asian bond market is favorable, says Victoria Ip-Cheung, head of fixed income at Manulife. She tells CNBC how best to play the fixed income space.
Asia's Recovery Is Led By Stimulus
Asia's recovery is not sustainable without government stimulus and the region is not a great destination for investment right now, says Kirby Daley, senior strategist of Newedge Group.
Investing in Silver
Silver is a buy opportunity, says Peter McGuire, Managing Director at CWA Global Markets. He speaks to CNBC rajah about investing in the "poor man's gold".