What stocks to buy?
New to MM. we have a SMSF sold most shares when Trump was elected president only kept EVN & NST, we are now looking to reinvest more in shares on ASX can you recommend about 10 shares.
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Answer
Hi Robert,
Firstly, great to have you on board, we hope you find MM to be a useful resource for your investing.
It’s important to recognise that Market Matters provides general advice rather than personal advice, which means we don’t make personal recommendations to any one member because we don’t have the insight into financial position, objectives, risk tolerance and so forth. Stocks suitable for one person may not be suitable for another. This is why we run several portfolios of stocks that allow individual members to marry up what they are trying to achieve with a portfolio that we invest in ourselves, is actively managed and performance tracked. 10 stocks would be considered a very high conviction approach.
In terms of what shares we are comfortable buying now; we mark these as Active in each respective portfolio. The best place to start looking would be our Active Growth and Active Income Portfolios, with their names telling you want we are targeting in each one portfolio.
More broadly, global equities are posting new all-time highs, dismissing tariff uncertainty and although we are bullish into Christmas the risk/reward is obviously less appealing than it was in April following “Trumps Liberation Day”. A couple of general views which may be useful.
- We will remain active in portfolios, and there may be a time in the not-too-distant future, where we will turn more defensive, though, we will cover that at the time. The market has had a good run and we generally like allocating capital more into weakness, not chasing strength.
- Our favourite bank is ANZ, and we think some growth stocks are still on the attractive side. WiseTech (WTC) an example here.
- Resources have been unloved, but we remain bullish on our positions in BHP for diversified exposure, Uranium (via Paladin), and Coal (via Whitehaven).
- We believe AI is going to be a huge driving force across markets reaching areas many investors aren’t yet considering. Goodman (GMG) a preferred play at current levels.
- Property and consumer staples provide solid yields and are defensive in nature. We hold positions in National Storage (NSR) and Metcash (MTS) amongst others.
- As rates come down, consumer discretionary stocks should benefit. We hold Super Retail (SUL) across two portfolios.
- Global electrification is a big and enduring theme, and Worley (WOR) is well positioned to benefit from it.
