10 key themes and 29 ways to play them

Morgans Financial Limited

Morgans Financial Limited

Equity markets remain at the mercy of abnormal macroeconomic conditions such as unconventional central bank interest rate settings and heightened political uncertainty. Making bold portfolio decisions amid such uncertain conditions is a difficult and potentially hazardous exercise; hence our cautious Asset Allocation settings. Despite these challenges, we think that enduring investment themes are worth following in the year ahead. These themes help frame our Asset Allocation strategy, and we highlight these, with the best stocks to leverage them:

 

 

A US cyclical recovery drives interest rates upwards – QBE Insurance Group (QBE), Computershare (CPU);

 

Rising domestic energy prices – AGL Energy (AGL), Infigen Energy (IFN), Senex Energy (SXY);

 

Resources cashflow resurgence – BHP Billiton (BHP), Rio Tinto (RIO), South32 (S32), Oil Search (OSH);

 

Diversify internationally – our recommended LICs and ETFs

 

Inbound tourism – Sydney Airport (SYD), Mantra Group (MTR), Helloworld (HLO), Apollo Tourism and Leisure (ATL), The Star Entertainment Group (SGR);

 

Rise of the Chinese consumer – Treasury Wine Estates (TWE), Blackmores (BKL), Bellamy's Australia (BAL), The A2 Milk Company (A2M), Capilano Honey (CZZ);

 

Smarter healthcare and the empowered consumer – ResMed Inc (RMD) and Volpara Health Technologies (VHT);

 

Retail disruption and the Amazon threat – Beacon Lighting (BLX), Lovisa Holdings (LOV), Bapcor (BAP), Qube Logistics (QUB);

 

The push for financial deregulation – Westpac Banking Corporation (WBC), US Banks (ASX: BNKS);

 

The digital marketplace – NEXTDC (NXT), Vita Group (VTG), Megaport (MP1).

 

 

Contributed by  Andrew Tang: Analyst - Equity Strategy  and Quant. Original blog here: (VIEW LINK)

 

 

 

 


Morgans Financial Limited
Morgans Financial Limited
Stockbroker
Morgans Financial Limited

Morgans is Australia's largest national full-service retail stockbroking and wealth management network with over 240,000 client accounts, 500 authorised representatives and 950 employees operating from offices in all states and territories.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment