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24 hot stocks and funds for 2021

There is always doubt about the future, but 2021 will be especially challenging for investing. Equity markets are at stretched valuations as analysts build in optimism about earnings recovery and stimulus in a post-COVID world. The safety of cash and term deposits offers negative real yields, forcing many conservative investors to take on risk they would otherwise avoid. As they seek an elusive combination of defensive market exposure with reasonable yield, they see others enjoying the growth story by buying companies without profits or dividends. Time will tell who wins.

We contacted two dozen fund managers and product providers, and thanks to the following contributors for their views on 2021:

  • Shane Miller, Chi-X Australia
  • Kris Webster, Magellan
  • Sean Fenton, Sage Capital
  • Steven Bennett, Charter Hall Group
  • Tim Canham and Wik Farwerck, First Sentier Investors
  • Aaron Binsted, Lazard Australia
  • Franklin Global Growth Fund team, Franklin Templeton
  • Gemma Dale, nabtrade
  • David Bassanese, BetaShares
  • Michael Murray, Australian Ethical
  • Nandita D’Souza, Citi
  • Perpetual Investments
  • Australian Equities Growth Team, First Sentier Investors
  • Deana Mitchell, Australian Ethical
  • Roger Montgomery, Montgomery Investment Management
  • Peter Bell, Bellmont Securities
  • Jordan Eliseo, The Perth Mint
  • Alex Pollak, Loftus Peak 
  • Jun Bei Liu, Tribeca Investment Partners
  • Marcus Padley, Marcus Today
  • Orbis Investments
  • Vanguard Investments Australia 
  • Adrian Martuccio, Bell Asset Management

We allowed nominations for listed companies, funds or sectors to give a broad range of opportunities, and you should read the recommendations in that context as some people mention their own funds.

Please note, responses were received around mid-December 2020 and some prices may have changed.

At the end of 2021, we will review these selections to check the best and worst results and calculate an overall weighted return.

Graham Hand

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Disclaimer: Highlighting these stock picks does not constitute any offer or inducement by Firstlinks or the contributing individuals and companies to make any investment. This publication is for general information only and has been prepared without considering any person’s objectives, financial situation or needs and you should therefore consider the appropriateness of the information, in light of your own objectives, financial situation or needs, before acting.

Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf.

To obtain advice tailored to your situation, contact a professional financial adviser. Past performance does not necessarily indicate a financial product's future performance.

 

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The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use.
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