Investors should eye developed markets: expert

Wang said the United States is expected to enjoy a recovery, as indicated by its housing market where the inventory-sales ratio has fallen to a low near equal to the 1998-2005 level. The figure signals strong housing demands, which may in turn raise property value and stimulate the country's economy, he said, adding that investors may consider entering U.S. stocks when they are at a low.

As for Europe, Wang said concerns over the debt crisis have slowly dissipated. Investors should not equate low economic growth with low earnings by European enterprises, which get 55 percent of their sales from the United States and emerging markets, he noted.

Japan, meanwhile, may benefit from stimulus measures announced by the country's new prime minister, Shinzo Abe, who has called for a loose monetary policy and an inflation target of 2 to 3 percent. A recent devaluation of the yen is expected to lift earnings by Japanese firms, he said.

As for investments that generate steady yields, Wang recommended high-yield bonds.

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