Sectors: Opportunities & Threats

Based on our analysis of structural trends and regular market cycles, we identify opportunities and threats in the following sectors:

STRUCTURAL OPPORTUNITIES
Sectors or Industries highlighted as opportunities because of structural trends:
Health Care
Health Services
Biotechnology
Pharmaceuticals
Online Retail
Online Services
Payment Systems
Internet Security
Telecommunication
Consumer Services that benefit from Technology
Passive Investment Managers – rise of ETFs
Food Brands with strong Asian markets
STRUCTURAL THREATS
Sectors or Industries highlighted as threats because of structural trends:
Oil & Coal – global warming and rise of renewables
Energy utilities – rise of renewables
Active Investment Managers – rise of ETFs
Bricks & Mortar Retail – rise of online retail
CYCLICAL OPPORTUNITIES
Gold – geopolitical uncertainty
Building Materials – infrastructure
Strong AUD – offshore investment
Banks (US) – rising earnings
CYCLICAL THREATS
ASX Banks – increased capital requirements
Australian Residential Property – apartment oversupply
ASX Retail – international competition
Bulk Commodities – China declining investment
UK – Brexit
Canada – oil prices and real estate
China – real estate and financial markets

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