At this time of the year, there are many predictions and forecasts from experts to wade through.
However, you can't invest directly in macroeconomic trends. And those predictions might be incorrect, or the expert's timing might be off.
So it's much more helpful if the pundits actually mention specific S&P/ASX 200 Index (ASX: XJO) stocks that they're backing.
That way, the fund managers are putting their money where their mouth is, and you can consider buying stocks on the basis of the company's potential rather than ethereal economic drivers.
The ECP Growth Companies Fund did exactly this recently, naming three ASX shares that had mixed fortunes last month but are worth holding for the long term:
'A high-quality business'
The share price for building materials provider James Hardie Industries plc (ASX: JHX) tanked almost 10% in December.
In fact, with interest rates rising steeply, the past year has been pretty unpleasant for investors, with the stock plunging more than 40%.
"The slowdown in housing continues to weigh on investment appetite, particularly the rate of deterioration in volume outlook and lack of visibility," read ECP analysts' memo to clients.
"Growing their economic footprint may be challenging in the near term."
Despite these short-term pressures, the fund is sticking with James Hardie because of its excellent prospects in the longer run.
"James Hardie remains a high-quality business demonstrating its commitment to managing supply and demand, with a clear focus on product mix," the memo read.
"Colourplus growth remains strong, with 31% volume growth in 2Q23, which should support average selling price and margins."
'Strongly positioned' to grow in 'structurally attractive' market
Financial services software maker Netwealth Group Ltd (ASX: NWL) had a pretty ordinary Christmas too, with the share price plummeting 12% last month.
According to ECP analysts, there was no news from the company to justify the de-rating.
"Short-term investor sentiment has remained focused [on] the cadence of in-flows to wealth platforms with advisors regaining client consolidation momentum as markets have stabilised."
Despite the short-term hiccups, the ECP team is keeping the faith in Netwealth.
"Notwithstanding variable quarterly flow results, we continue to believe Netwealth is strongly positioned to continue gaining market share in the structurally attractive wealth platform market."
Netwealth shares have dipped 21% over the past 12 months.
China could be ramping up
December was a different story for the stock price of mining giant Rio Tinto Ltd (ASX: RIO), as it soared more than 6%.
The ECP team attributed this to China's COVID-19 reopening triggering a rocket under iron ore prices.
"The Chinese government has also been making positive noises in relation to economic growth and have signalled that they plan to address issues related to residential property prices," read the memo.
"Infrastructure spending is also likely to be a focus."
The Rio Tinto share price has been on a wild rollercoaster over the past year, dipping as low as $87.60 and flying as high as $128.55.
