Insights
Investment Watch is a quarterly publication for insights in equity and economic strategy. US President Donald Trump’s “liberation day” tariffs have rattled global markets. Since the pronouncement, most global indices have been down by over 10%.
Investment Watch is a quarterly publication produced by Morgans that delves into key insights for equity and economic strategy.
This publication covers
Economics - Tariffs and uncertainty: Charting a course in global trade
Asset Allocation - Look beyond the usual places for alpha
Equity Strategy - Broadening our portfolio exposure
Fixed Interest - A step forward for corporate bond reform
Banks - Post results season volatility
Industrials - Volatility creates opportunities
Resources and Energy - Trade war blunts near term sentiment
Technology - Opportunities emerging
Consumer discretionary - Encouraging medium-term signs
Telco - A cautious eye on competitive intensity
Travel - Demand trends still solid
Property - An improving Cycle
US President Donald Trump’s “liberation day” tariffs have rattled global markets. Since the pronouncement, most global indices have been down by over 10%. The scope and magnitude of the tariffs are more severe than we, and the market, expected. These are emotional times for investors, but for those with a long-term perspective, we believe short-term market volatility is a distraction that is better off ignored.
While the market could be in for a bumpy ride over the next few months, patience, a well-thought-out strategy, and the ability to look through market turbulence are key to unlocking performance during such unusual times. This quarter, we cover the economic implications of the announced tariffs and how this shapes our asset allocation decisions. We also provide an outlook for the key sectors of the Australian market and where we see the best tactical opportunities.
Morgans clients receive exclusive insights such as access to our latest Investment Watch publication. Contact us today to begin your journey with Morgans.
Equity markets remain at the mercy of abnormal macro-economic 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 (and the best stocks to leverage them) below:
Our ten key investing themes and how to play 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)
Morgans clients receive access to detailed market analysis and insights, provided by our award-winning research team. Begin your journey with Morgans today to view the exclusive coverage.
