For those Fools who are following a long-term, buy-and-hold investment strategy, it’s very hard to decide where to allocate your capital at the moment.
There’s a lot happening in geopolitics and global markets, with ASX gold stocks up one week and oil prices flying around at record highs, but I find it’s best to go back to basics in times like these.
I’ve taken a look at 3 ASX 50 stocks that might be a little shaky at the moment, but have good long-term fundamentals and a strong technical environment into 2020 and beyond.
1. BHP Group Ltd (ASX: BHP)
The largest Aussie miner has had a mixed year on the markets in 2019, as the BHP share price has edged 12.5% higher since the start of January.
Much of BHP’s share price performance can be put down to the ongoing US–China trade war, with concerns that a breakdown in trade relations could hurt BHP’s business in Asia.
BHP posted a strong full-year result as it doubled its profit to $12.2 billion, although a lower than expected cost from its Brazilian Samarco dam collapse helped boost its headline numbers higher.
Looking ahead for the next decade, the resolution of the US–China trade war and strong population and economic growth in Asia should boost demand for BHP’s iron ore and propel profits higher.
2. Cochlear Ltd (ASX: COH)
Cochlear is a leading medical device company that currently boasts a market cap of just over $12 billion and is firmly entrenched in the ASX 50.
To me, Cochlear seems like one of those companies that just keeps getting better, with specialist technology, growing support for hearing aids and disability services, and a strong financial performance to back it up.
In the next 10 years, I’d expect Cochlear’s significant research and development to continue to kick goals, following the recent U.S. Food and Drug Administration (FDA) approval for its latest cochlear implant.
The Aussie healthcare group offers a steady dividend and has seen its share price climb 933.58% higher since the turn of the century, and I wouldn’t be surprised to see it repeat the trick in the next decade.
3. Telstra Corporation Ltd (ASX: TLS)
The Telstra share price hasn’t been the strongest performer on the ASX in recent times, famously changing its dividend policy and struggling in the face of competition from NBN Co.
However, with fellow telco TPG Telecom Ltd (ASX: TPM) dropping out of the 5G network race, Telstra looks well-placed to capitalise on the potentially lucrative market in the next decade.
I’d certainly view Telstra as a long-term investment rather than anything short-term, but I think the strong brand name and 5G potential could be worth investing in.
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Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Cochlear Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.