Friday has brought good news for embattled investors. DeVere Group CEO and founder Nigel Green has tipped that major global indexes – such as the S&P/ASX 200 Index (ASX: XJO) – could be nearing their lowest point and getting ready to rally.
"The markets have been shaken in recent months, but now I'm calling it: the bottom is very close," Green says.
And he's flagged the sectors he thinks will provide buyers the biggest bounce. So, where does Green suggest investors put their money to best ride the recovery wave? Let's take a look.
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Is the ASX 200 gearing up for a rebound?
The ASX 200 has tumbled 6.38% since the start of 2022. While its downturn has likely disappointed many Australian investors, it's fared better than other global markets.
As deVere Group's Nigel Green points out, Wall Street has endured far greater suffering. The S&P 500 has tumbled 15% year to date while the Nasdaq Composite has fallen nearly 26%.
"The market downturn has been pretty brutal," Green admits, "but I'm confident that we're close to the bottom."
"With a bounce on its way, investors should be positioning portfolios to take advantage of the rally."
The deVere boss says it "makes sense" for investors to get exposure to sectors like energy, infrastructure, commodities, pharmaceutical, and consumer staples with strong branding ability.
Of course, those sectors are represented on the ASX 200 by the likes of energy share, Woodside Energy Group Limited (ASX: WDS) and, in infrastructure, toll road operator Transurban Group (ASX: TCL).
BHP Group Ltd (ASX: BHP) is the ASX 200's largest commodity play while healthcare stock Telix Pharmaceuticals Ltd (ASX: TLX) represents the pharmaceutical sector.
Finally, ASX 200 retail giant Wesfarmers Ltd (ASX: WES) is behind both Bunnings and Kmart. The pair both sit among Australia's most trusted brands.
While Green's predictions of an upcoming rally will likely be met with excitement, he warns it's not the time to throw caution to the wind.
"It's not just about piling into lower-priced, high-quality investments; it is also about buying judiciously and being aware of the shifting economic landscapes and trends," he said.
"Portfolio diversification is key and plays an essential role in managing volatility."
