Looking to stock up on good quality companies during the market volatility? With the COVID-19 pandemic likely to have a long-lasting impact on global economies, it's not easy picking which companies are the best investments for 2020 – or which should be avoided.
So we spoke to stock analysts Michael Wayne from Medallion Financial and Bell Direct's Jessica Amir to get their views on which stocks are worth considering over the next 12 months.
Remember! Stocks are risky and unpredictable – a stock that's right for one person, might not be the best choice for you. That's part of what makes investing in the stock market both challenging and exciting!
During a major stock market crash, most company shares will fall, so savvy investors will be looking to scoop up good quality stocks at discount prices. According to Wayne, some of these top bargains are likely to be found in the financial and travel sectors.
He told Finder investors should look out for quality financial businesses that have seen prices fall over 30% from their heights as well as travel-related companies that are expected to recover once quarantine measures lift.
Also read: How to invest during coronavirus COVID-19
"Financial market facing businesses get hammered during periods of market turmoil. Once trading conditions normalise, prices tend to stabilise and recover quickly."
Wayne's stock picks: Macquarie Group, Magellan Financial Group, Sydney Airport Holdings, IDP Education.
Investors should prepare for the possibility of an extended recession according to Amir. If we do see a deep global recession, consumer staple companies such as food and beverage retailers are expected to be among the safest.
"Thinking about what’s needed regardless of economic growth slowing, regardless of Coronavirus (which will pass)," said Amir.
"Take note of the good news that is coming out amid corona. Who is staying on track to meet their earnings forecast and why?"
Amir's stock picks: Coles Group, Woolworths Group, Metcash, Telstra, AGL Energy.
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To buy shares you'll need to find a broker. You can use the table below to compare online brokers (also known as share trading platforms) available in Australia.
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involve substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
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