With stock markets still out of the stalemate of a brutal liquidation in the first half, investors are increasingly looking for strategies to preserve and grow their capital. Asset manager Jack Ablin tells CNBC how he is trading market volatility, highlighting some of his major stocks along the way. Investors should put their money into companies with high-quality balance sheets, solid and consistent dividends and that “trade at a significant discount from the rest of the market,” according to Ablin, founding partner and chief investment officer of Cresset Capital . . Its portfolio of “quality producers and dividends” includes Exxon Mobil and Chevron in the energy space, as well as Coca-Cola and McDonalds in the consumer sector. “These are companies that get dividends or dividend aristocrats who have had a 25-year history of maintaining and increasing their dividends,” Ablin told CNBC’s “Squawk Box Asia” on Thursday. Shares of Exxon Mobil and Chevron have risen 36.1% and 20% respectively this year, helped by rising oil prices. But Ablin believes stocks still seem cheap relative to his peers. “Chevron, for example, trades in installments [ price-to-earnings ratio ] of about 8 with a good dividend yield of 4%, which has also been quite consistent: this is a company that has maintained and increased its dividend over time, “he said.” Exxon is in a similar position, with an advanced P / E ratio. [of about] 11 “, he added. The company has a dividend yield of 4.2%, according to FactSet data. Ablin said both shares were” trading at a fairly substantial discount compared to the rest of the market “right now.” The place to be for the Looking to the future, Ablin said that “quality and dividends are probably the place to be for the next four quarters.” He noted that quality stocks are trading at the “biggest discount” to the rest of the market that they have ever seen. So-called quality stocks have several characteristics, such as low debt, stable earnings, and steady asset growth. Meanwhile, dividend stocks are also growing in popularity as investors move to stocks that offer relative security and higher returns. Ablin also believes FAANG’s actions “are back in vogue” once the pandemic is over. The FAANG grouping refers to the shares of five major technology companies: the Facebook Meta matrix, Amazon, Apple, Netflix and the Google Alphabet matrix. Citi’s bid to outperform a bearish market calls its “highest conviction ideas” for the second half of 2022, and gives an 85% lead Wall Street believes these defeated global stocks are poised for a rebound As for the possibility of a recession in the United States, Ablin acknowledged that risks increase, but said he does not expect a slowdown in the magnitude of 2008. During the 2008 recession, the S&P 500 fell 56, 8% high to low from October 2007 to March 2009., with much of the fall (48%) occurring in the short period around the climax of the crisis in the fall of 2008. “I think that we are entering a recession, but I don’t think it’s a recession that is going to stay with us for a while, ”Ablin said.