Where Morningstar readers see investment opportunities: taking the pulse at MIICAU18
Investors are bracing for more volatility, but attendees at the Morningstar Individual Investor Conference in Sydney see pockets of opportunity in travel, mining and medical cannabis.
Emma Rapaport: If you were to make an investment at the moment, where do you see opportunities in the market?
Unidentified Speaker: I think the opportunities broadly for investing is to not react too quickly to what's going on around the world.
Unidentified Speaker: So, because of the industry I work in, in the tourism sector, I think the Visitor Economy, which is still one of the fastest growing, you know, people are travelling more than they ever have before, airfares are more affordable than they have ever been before, I think there's a massive opportunity in that sector.
Emma Rapaport: Anything you see is hot?
Unidentified Speaker: I think the banking sector has been hammered due to the Royal Commission and a whole lot of other things. And I would think if it drops another 20 per cent from the recent highs to a 20 per cent low, it's a huge drop and that would be a sector that would be worth looking at.
Unidentified Speaker: I am very – I still think that Boeing is very good. I mean, it's a huge company, well-run and so forth. It's obviously going to be stable because of its involvement in the defense sector which is about 30 per cent and the domestic market.
Unidentified Speaker: So, I think, a stock called Appen is currently a little bit undervalued but fluctuations over previous weeks and probably months have been quite transverse in that respect. But yeah, I would say, Appen. But apart from other ones, I probably wouldn't recommend.
Unidentified Speaker: Well, I've got nothing in the mining sector at the moment. But I'd like to – I'm looking at the mining sector and I think it's fairly highly priced at the moment, but I'm waiting for opportunities there.
Unidentified Speaker: Well, I think, investing in medical cannabis, pharmaceuticals, I think, it's an emerging market. I think it's pretty risky because it's pretty new. But I've been getting good returns from it. So, kind of, wanted to see how other people viewed it, but I haven't talked to one about it yet.
Unidentified Speaker: Obviously, the emerging markets have probably come off more than European and Aussie markets. So, I might look to overweight my emerging market allocation.
Unidentified Speaker: Me personally, I feel like I'm a lot of the other attendees, very risk-averse. So, looking at those like good companies that are like grow in the long run and pay a steady dividend, all those nice things.