High conviction stocks for April

Healthcare was in the spotlight this month due to falls in some of the big names on the back of a rising US dollar. There’s around an 80% correlation between healthcare stocks and the currency, but while we do see some further potential downside for the AUD, in our view it’s worth waiting until after the May budget to dip into the healthcare sector. As company news flow slows down, the spotlight again turns to chatter about central bank policy. We expect the market to be directed by central banks, but the A$19b in dividends being paid in March and April should provide strong support for the equity market before the May confession season. The pace of earnings growth across the market remains uneven and we urge investors not to be complacent sitting on legacy positions. For the full update on Morgan’s High Conviction stocks for April watch the video below.