BUY Jing Ulrich, chairwoman of China equities at JP Morgan While the market is still full of uncertainties and volatility, there are some sectors that seem better positioned to weather the storm than others, Ms Ulrich said. 'In this current volatile market environment, we recommend staying defensive. For potential investment opportunities, we would look towards more resilient sectors such as infrastructure builders and consumer staples.' Mainland infrastructure plays should benefit from the government's commitment to fixed-asset investment. Louis Wong Wai-kit, fund manager at Phillip Securities Valuations are approaching historic lows, making it a good time to snap up exchange-traded funds and reap the benefits of a market rebound over the medium to long term, Mr Wong said. 'I am advising a no-brainer approach to get into the market. I want to diversify the risk, so I am advising investors to accumulate index funds at this moment.' Investors may want to focus on the Tracker Fund of Hong Kong and the Hang Seng H-share Index ETF, which are designed to follow the performance of the Hang Seng and H-share indices respectively. The Hang Seng Index could start to recoup some losses next year and climb as high as 20,000 by the year's end. Patrick Yiu Ho-yin, associate director at CASH Asset Management Sliding share prices have opened up opportunities to accumulate blue-chip mainland stocks with strong fundamentals at discounted levels, Mr Yiu said. Investors may want to target the mainland insurance sector because rapidly increasing premiums in recent months signal a steady stream of revenue for insurers such as China Life Insurance and Ping An Insurance (Group). Mainland insurers have also reduced their exposure to the domestic stock market, making them less vulnerable to volatile downswings, he said. 'If the share price is going down, it could provide a good opportunity for long-term investors.' Alex Wong, director at Ample Financial Group Doomsday economic forecasts may have exaggerated the extent of the financial crisis, creating attractive valuations for intrepid investors, Mr Wong said. 'The market is discounting the risk of corporate collapse,' he said, adding that he did not think that was a likely scenario. 'So this is a good time to buy for some, but of course, the stock market will still go down [in the near term] because of further liquidation selling.' Investors who did not want to take their chances with the volatile downswings could consider buying into the utilities sector, he added. Utility companies are not as vulnerable to demand fluctuations and so they are generally considered safe investments during economic downturns. Renault Kam, portfolio manager at Atlantis Investment Management Market movements have mostly been dictated by skittish sentiment, and that has created an opportunity for long-term investors to accumulate holdings at prices that could eventually seem like a bargain, Mr Kam said. 'In the longer term, if people can wait for more than 12 months, right now there are quite a lot of good companies with share prices at very reasonable levels. This is a very good time for long-term investors.' Investors should focus on stocks that can benefit from the mainland's robust economic growth. One area to look at is the infrastructure sector because of Beijing's commitment to developing new railways, highways and other transportation projects. Geoff Lewis, head of investment services at JF Asset Management Panic selling has created an opportunity for investors to tap into the region's strong economic growth prospects at attractive valuations, Mr Lewis said. 'We think Asian stock markets will be quite well placed to lead the next business cycle rally and next market rally. This is actually a very good time to be buying into Asia.' Investors must be willing to weather some turbulence across global markets, however, as an economic slowdown is likely to take a toll on corporate earnings. But current valuations are at discounted levels and could be a good entry point for long-term investors. 'It's the worst time to be selling because if you do that, you will find it very hard to get back in at the appropriate moment.' Guy Monson, chief investment officer at Bank Sarasin Regional markets are becoming more affordable and have a strong upside for future growth, creating good buying opportunities for local investors, Mr Monson said. 'Investors should be looking closely at regional markets. It should be the strongest region in the world at valuations that are increasingly attractive.' Investors should steer clear of exporters and other sectors exposed to the global economy and instead acquire companies that are positioned to benefit from robust domestic consumption and economic growth within the region, he said. SELL Kingston Lin King-kam, associate director at Prudential Brokerage The market will be weighed down next year by deteriorating earnings levels across many sectors, stemming from a global downturn, Mr Lin said. 'There are many, many stocks to sell rather than buy.' Key sectors to avoid include local properties, mainland resources and aviation. Investors may want to sell their positions in companies in these areas because of the expectation of waning demand and potential oversupply, Mr Lin said. Investors might want to hold on to mainland financials and industrials, however, because they are better poised to weather the storm. Patrick Shum, a strategist at Karl Thomson Securities Heavy selling pressure on equities has already created attractive valuations, but the market may not be out of the woods yet, Mr Shum said. The Hang Seng Index could tumble as far as 12,000 by year's end and investors may be better off taking profits on technical rebounds before they start to accumulate larger positions. They should also dump stocks facing strong headwinds such as property and export counters, he added.