The wild swings in equity markets make for a rough ride but they offer opportunities for investors to buy stocks on the cheap, advised Norman Chan, chief investment officer of Banyan Asset Management.
“Sentiment is going to remain very weak and the market's going to be very volatile because of the dominating European problems,” Chan said on CNBC’s Protect Your Wealth.
He added that while it is difficult to protect the downside, those investing for the long haul could use this period to beef up one’s stock portfolio.
“If you have the long-term horizon and can stomach the near-term volatility, it's a good time to bargain hunt.”
Chan singled out the China market as it has corrected significantly over the past six months.
In addition, he said that Beijing might ease off on tightening measures to reign in the fast growing Chinese economy, due to uncertainties created by the euro zone’s sovereign debt crisis.
“That would help certain sectors such as domestic consumption and services sectors to rebound after their recent corrections.”
Commenting on Europe’s debt woes, Chan said the crisis is likely to be contained within Europe and the risk of it leading to a global financial meltdown is low.
He favors Southeast Asia, as “the region is less dependent on European trade, and markets like Malaysia and Indonesia now look attractive.”
Scorecard — What He Said:
* Chan's Previous Appearance on CNBC (May 11, 2010)
Market Views — Bull & Bear:
- Stock Prices to Fall Further—So ‘Sit and Wait’ Before Buying
- Beware the 'Death Cross,' Sell into Rallies
- 10 Reasons Why Markets Will Rebound: Pro
- Fears Overdone, Double-Dip Unlikely: Strategist
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."