With many experts predicting a bullish 2023, buying ASX shares now would be the prudent action to take if you don't want to miss the upswing.
But with the economy about to slow down from a series of interest rate hikes, stock selection is absolutely critical.
Fortunately, Shaw and Partners senior investment advisor Adam Dawes had a couple of ideas:
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'Copper is one of those places you need to be'
Sandfire Resources Ltd (ASX: SFR) is a major copper producer.
Dawes told Switzer TV Investing that he's a big fan of the ASX share as the business supplies a resource for which the world will be hungry for years to come.
"Certainly with the thematic of copper potentially having a drawdown over the next coming two to three years with all of the battery technology that's going to happen, I certainly think copper is one of those places you need to be."
Quite brilliantly for Sandfire, its major competitor is about to disappear.
Rival copper extractor OZ Minerals Limited (ASX: OZL) has been courted by BHP Group Ltd (ASX: BHP) for a takeover throughout this year.
And finally, last week, the big Australian got its way, with Oz Minerals agreeing to a 100% acquisition.
"If you take Oz Minerals out of the equation… the only real large copper player left on this market is Sandfire," said Dawes.
"So a lot of that institutional money that will flow out of Oz Minerals when it goes into BHP has to go somewhere. And the first port of call would be Sandfire."
Making hay while competitors are demoralised
Respiratory medical device maker Resmed CDI (ASX: RMD) is Dawes' other ASX share pick.
"We're very overweight in healthcare, and this does really offer defensive earnings in any kind of storm."
Resmed's advantage comes from rival Koninklijke Philips NV (AMS: PHIA) having to perform a safety recall for its devices.
While that episode started last year, it is still having lasting effects.
"It's a dominant player in the CPAP marketplace, which we're really really comfortable with," said Dawes.
"Resmed is definitely on its way to continuing to keep up that market share and becoming dominant in that space, now that Philips had a couple of product recalls."
He added that the addressable market in sleep apnea treatment is huge, and that market is growing at a much faster rate than the general healthcare industry.
The Resmed share price is down 7% year to date.
