One of Our top 10 picks for 2016 is Sydney Airports
As we head into 2016 we remain positively positioned towards equity markets, although we believe investors will need to be selective in picking investments in order to generate significant positive returns. Key themes we will be watching to drive markets in 2016 will be the pace of tightening by the US Federal Reserve, and whether commodities, in particular oil, can recover from their current lows. With this in mind we highlight our top 10 stock picks for 2016. Sydney Airports benefits from 4 of our major investment themes: an uplift in tourism; growing asian middle class; a failing AUD and lower oil prices.
These are now beginning to reflect in this company's performance with both domestic and international passenger numbers accelerating strongly as SYD reported solid profits in February. SYD's share price continues to rise despite recent volatility in markets and we are positive on the outlook for SYD for the rest of 2016.
Our Top 10 Picks for this year reflect the following investment themes:
Dining Boom – Global population growth and decreases in available arable land is putting food in high demand
Higher US interest rates – The US Federal Reserve will continue to gradually raise interest rates into 2016/2017
Lower AUD/NZD – Higher US interest rates and lower AU & NZ cash rates should result in lower domestic currencies
Stronger tourism – A lower AUD and NZD should translate to an increase in foreign tourism
Strong retail spending – Effects of lower interest rates and strong consumer confidence should translate to a stronger retail sector
Read the rest of our top 10 stock picks for 2016 in our SPECIAL REPORT by signing up for a FREE trial membership below: