Today, 2 January, is the first trading day of 2015, but are you prepared for the coming year? Do you have a strategy or even a 3 or 4 point "to do" list to guide your stock picking?
The S&P/ASX 200 Index (ASX: XJO) (Index: ^AXJO) wrapped up with a paltry 1.2% annual gain. Some of the index's winners like Domino's Pizza Enterprises Ltd (ASX: DMP), Sirtex Medical Limited (ASX: SRX) shot up 56% and 142% respectively showing the power and necessity of quality stock picking.
Below are some of the business themes and trends that could give you a head start on where to do your picking in 2015.
1) Transport driven by cheaper fuel
If the economy sees a rise, you can expect transport companies to get a boost. Road transport stocks like Toll Holdings Limited (ASX: TOL) stand to benefit from the lower petrol costs (one of the biggest expenses transport companies have) associated with the collapse in world oil prices.
Another is Automotive Holdings Group Ltd (ASX: AHE). The largest auto dealership in Australia also has Australia's biggest refrigerated food transport and warehousing business. We can expect lower prices at the bowser to help lift the bottom line.
2) Aussie companies with overseas business
The US stock market may continue setting new all-time highs. While the ASX flounders, put your Aussie dollars to work in stocks that generate a large portion of revenue overseas. Global supply chain logistics leader Brambles Limited (ASX: BXB), known for its CHEP pallets, may see a profit boost as US dollar denominated earnings are translated back to Aussie dollars.
Healthcare companies like CSL Limited (ASX: CSL) are also on the move, expanding business internationally and racking up juicy share price gains.
3) Care for older Australians
The mass of Baby Boomers are just entering retirement age this decade. They will need medical care, health supplies, specialist treatment and even housing. Pathology and medical diagnostic services should see more demand, so you should have market leader Sonic Healthcare Limited (ASX: SHL) in your watchlist.
In addition, Ramsay Health Care Limited (ASX: RHC), the largest private hospital operator, had a great year in 2014 with a number of acquisitions. The development and expansion of existing hospitals to handle more patients could pay benefits for the next several years.
