Following reporting season, a number of previously well-loved sectors have fallen out of favour with the market. Outdoor advertising, aged care operators, and telecommunications companies have all seen falls of around 30%. Despite the well-established difficulties of operating in the aged care sector, investors got “over-excited” about this area and underestimated the risk in this area. Another sector under pressure is outdoor advertising, where a combination of high expectations and high competition for market share resulted in markets getting ahead of themselves. Likewise, the telecommunications sector has been subject to high expectations and significant competition. Abela says he’s “not inclined to chase any of these categories in the short-term,” but in the full video below, he identifies which sector he remains positive on over the long-term.
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