Buy Hold Sell, by Livewire Markets

Move over big tech, there are more opportunities in town.  After starting 2024 with earnings downgrades for a range of sectors and a slowdown in consumer spending, it was a bumper year for a number of sectors. Consumer discretionary was one surprise winner, with well-positioned brands like JB Hi-Fi and Nick Scali taking charge. Australian banks facing into a tougher environment continued to outperform, as did the financial sector on the whole, with insurers taking advantage of higher premiums. Biotech also started to surge, as falling rates outside of Australia and a number of successful clinical trials bolstered the sector. Of course, the big tech companies continued to dominate and push markets to record highs - it's hard to ignore the extraordinary growth in the likes of Nvidia for example, but it's worth noting the pace of the growth seems to be moderating somewhat. With valuations at a premium in the tech sector, there are a range of other areas where fund managers are hunting for big growth. Now could be a great time to be looking at these industries and economies. 2025 has started on a promising footing. Inflation seems to be moderating, global rates are finally falling, and there are signs of strength and improvement in a range of economies. The scene has been set for a big year in markets. Is it any wonder the experts seem decidedly bullish? 2025 could be the year for healthcare companies to continue to really fly, the energy transition to push certain commodities to new heights and the return of manufacturing. As part of Livewire’s annual Outlook Series, we recently asked 10 of Australia’s top fund managers to answer which industries, sectors or areas of the market they see the biggest growth potential in for 2025. We also asked them to name at least one stock they are using for exposure.  Our featured fund managers include (in order of appearance): Sam Ruiz, T.Rowe Price Jessica Farr-Jones, Regal Funds Management Nick Guidera, Eley Griffiths Group Elise Kennedy, Schroders Lucas Goode, IML Zoe Middleton, Platinum Asset Management Todd Warren, Tribeca Investment Partners  Rachel Folder, Pendal Group Brittany Isakka, Spheria Asset Management James Barker, Ellerston Capital Note: The information provided is not intended to be a recommendation and is offered in the spirit of the Outlook Series. None of the fund managers invest in a single industry or theme; they incorporate these within a broader diversified portfolio where they adjust exposures over time based on their analysis of activity and stocks. Please do your own research and seek advice from a professional before making any investment decisions. Past performance is not a reliable indicator of future returns. You can watch the video by clicking the player, listen to the podcast, or read an edited transcript at the following website. These interviews were filmed on Tuesday, 10 December 2024.

The name Thomas Rowe Price Junior should have been consigned to the investing scrap heap. Born in 1898, Price’s career was just hitting its stride as the Great Depression hit and hit hard. At the time, he was the head of investment for the broking firm MacKubin, Legg and Co., but instead of developing great hate for markets, he fell even more in love with them. That inspired him to start T. Rowe Price and Associates in 1937, with a then-revolutionary focus on growth investing. His guiding philosophy was that by investing in well-managed companies operating in deep pools of opportunity, he could generate returns ahead of inflation and the overall economy. It’s a philosophy that would earn Price the moniker the “Father of growth investing”. T. Rowe Price still operates to this day and manages around US$1.6 trillion globally. So, how would Price’s philosophy stack up today? Probably pretty well. From 1990-2020, growth stocks delivered an average annual return of about 12%, compared to around 9% for value stocks. Over the journey, growth investing has shown resilience during economic downturns, as companies with strong fundamentals and innovative products tend to recover faster and maintain their competitive edge. With all this in mind, we asked ten of Australia’s brightest investment minds, covering both ASX and global stocks, for their top growth pick in 2025.

Anyone with children or grandchildren will no doubt have said at some point, "You'd better be good so that you end up on Santa's 'nice' list." Of course, the inference is that nice children get more presents.  So, in the spirit of Christmas, this latest episode of Buy Hold Sell saw Henry Jennings from Marcus Today and Hugh Dive from Atlas Funds Management run the ruler over a handful of stocks and decide whether they've been naughty or nice.  For good measure, they each also nominate a stock they see as being on the naughty list in 2025. It could be a name that has done well this year but won’t be able to maintain its good behaviour, or it could be a naughty stock that hasn’t learned its lesson. Note: This episode was recorded on Wednesday 4 December 2024.

Every year, there are a couple of critical investment decisions that investors need to get right in order to set themselves up for a good year. These big decisions often trump stock picking or catching the latest fad at the right time. Rather, they are fundamental to giving yourself a fighting chance of outperforming. This year, if you did nothing else, buying the banks and selling the miners proved fruitful. A close second would have been staying long and strong in tech names, despite some of the nosebleed valuations we’ve all witnessed. So, what are the key themes investors need to have on their radar as we head into 2025? To answer that question, Livewire’s Hans Lee sat down with Henry Jennings from Marcus Today and Hugh Dive from Atlas Funds Management. In this episode, they reflect on what worked and what didn’t in 2024. They also highlight the key themes investors should have on their radars in 2025. For good measure, they each pick one stock that they would bet the house on – if they had to. - and one stock to avoid.  Note: This episode was recorded on Wednesday 4 December 2024.