As steep interest rate rises start biting Australian households, how badly will the economy crash?
That's one of the biggest questions for investors as the market winds up 2022.
One way to shield your portfolio is to buy ASX shares of companies that supply other companies. That may help in avoiding volatility in consumer spending.
Sure, any dip in economic fortunes will hurt every business. But if you're removed from direct exposure to end customers then the dip might not be quite as dramatic.
After all, business-to-business transactions are very different from consumer sales. Often supply contracts are longer term, rather than engaged on a transactional basis.
So if you're looking to buy ASX shares in businesses that provide for other businesses, here is a pair that experts have recently recommended:
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'Strong start to fiscal year 2023'
Multiple experts have told The Motley Fool in recent times that they like the look of Brambles Limited (ASX: BXB).
Now Ord Minnett senior investment advisor Tony Paterno joins those ranks.
"This global logistics supply company recorded a strong start to fiscal year 2023," Paterno told The Bull
He noted that on constant currency terms, sales in the quarter ending September grew 14%.
"Management expects sales to grow between 7% and 10% on a constant currency basis in fiscal year 2023."
According to Paterno, this sales growth will be converted into profit.
"Management reiterated underlying profit growth of between 8% and 11% on a constant currency basis in fiscal year 2023." Brambles shares also pay out a handy 2.88% dividend yield.
The share price has proven resilient in a turbulent year, now trading 4.4% higher than at the start of 2022.
Ecommerce can only grow in the coming years
Catapult Wealth portfolio manager Tim Haselum rates Goodman Group (ASX: GMG) as a buy at the moment.
He admitted there are worries for the industrial real estate provider in the coming months.
"Recently rising bond yields and exposure to Europe are short-term concerns," said Haselum.
"However, over the longer term, we believe Goodman Group now presents a good buying opportunity, given near full occupancy and a development pipeline of about $13 billion."
Haselum's team reckons a decent earnings boost is in the pipeline.
"In our view, earnings per share growth guidance of about 11% is conservative."
The Motley Fool last week reported on Bell Potter's latest memo, which indicated those analysts share the same bullish view as Haselum.
"The long term outlook for industrial and logistics properties is favourable given the continuing growth in ecommerce (or online retail sales) and the growing middle class in developing countries."
