Which stock to invest in current bear market?

1. Dividend Stock
   Go for companies with growing dividend payout and which is fundamentally sound. I personally do not think REIT is a good choice as it is still subjected to property cyclical downturn which will affect its NAV and rental. However some REIT present good values. Suntec REIT is well-positioned to leverage on the booming Marina Bay area, especially with the upcoming casino, and it is well below its NAV. One personal favourite is SPAusNet, which promises growing dividend till 2010 at a good yield 9-10%


2. Offshore and Marine
   The recent steep oil-price correction has brought up concerns over the life cycle of this sector again. However I remain comfortable as: 1) the sector continues to deliver on earnings; and 2) recent export data show that it is about the only sector that is holding up, and I believe crude oil price will stay above $100. SembCorp is one balanced company, which provides exposure to water treatment industry as well. Another good company which has dropped to rather attractive value is Swiber, which has an attractive order book.


3. China Consumer
   Though China growth is more or less affected by the US economy, it is still at double digit growth year on year. I would prefer China Consumer companies which has the bulk of their business in domestic China. I do not think companies like China Fish, Celestial, China Milk and China Sky will be adversely affected by the slower growth, and presented great value at their current price.