Which are the best stocks to take a punt on in 2022?
Here are my tips:
Written by R. A. Stewart
2022 is nearly here and those of you who like to have a dabble on the sharemarket through using those micro investment apps such as Robinhood in the US or Sharesies in New Zealand giving some thought to which shares are most likely to outperform the market.
It is hard for the ordinary man in the street to pick a stock that is likely to do well for the simple fact is that the same information you are using to base your predictions on is available to everyone else. Still there is no harm in trying. There is a certain amount of satisfaction in making your own selections as there is from selecting your own horses to back in the Melbourne Cup without relying on the newspaper tipsters.
Without further ado, here are my tips:
Fonterra
Despite being blamed for climate change, this is my number one company for 2022 because there is always a demand for dairy products, and with Christopher Luxon being appointed as National Party leader, it has become more likely that National could steal the next general election due in 2023. This current government, led by Jacinda Ardern, has anti-farming policies which is really just biting the hand which feeds us since farming brings in so much export earnings.
Spark
Spark is my second tip. This is more than just a phone company. They also have contracts to televise certain sporting events.
Genesis
Genesis is an energy company. We all use power so I see no reason why this will not remain a steady stock. Trustpower and Meridian Energy are other power companies worth investing in.
Fletcher Building
A great New Zealand company. New Zealand is in a building boom due to the need for more houses. Problem for Fletcher though is that the demand for timber is outstripping supply.
Ryman Healthcare
The retirement industry is big business and so those companies which provide services to the elderly should flourish in the next decade and Ryan is one of these.
Companies to avoid:
With so much uncertainty in the tourism industry, any company involved in tourism and hospitality is best avoided as are most retail companies as the internet is affecting sales, though one exception could be Wrightsons which is a farming retailer.
Media and TV stations also have challenging times ahead as viewers get their information online.
Sharesies
Sharesies makes it possible for anyone to get into buying and selling shares. It is an online share market platform where you have the option of purchasing shares in individual companies or in various funds (managed/mutual funds). You can even start with $5. This is a no brainer because it gives investors young and not so young the chance to improve their financial literacy. There is certainly no substitute for experience when it comes to learning and this is applicable to everything else, not just investing.
Join sharesies here: https://sharesies.nz/r/377DFM
Note: This article is of the opinion of the writer and does not represent financial advice.
