There are two massive concerns for investors and the world in general this year: energy and recession.
While energy prices rocketed last year after the Russian invasion of Ukraine, that supply-demand imbalance is expected to continue in 2023.
"We think the outlook for energy stocks is attractive because there's just not a lot of supply coming in," Schroders portfolio manager Ray David told The Motley Fool earlier this year.
"No one really wants to invest in fossil fuels or LNG or gas without the high prices to justify the returns, because everyone's quite worried about renewables and the ESG factors."
As for a recession, this will be a reality in some parts of the world, even if Australia does not quite hit the definition.
Regardless, consumers and businesses will be suffering alike after ten months of steep interest rate rises.
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'We would be buying into dips'
Gold is a commodity often spruiked as a "safe haven" for tougher economic times.
But the gold price did rocket up about 20% between November and February as recession fears struck investors.
Shaw and Partners portfolio manager James Gerrish likes the gold sector with a medium to long term horizon.
"Short term further downside wouldn't surprise," Gerrish said in a Market Matters Q&A.
"We are overweight the sector hence will not be averaging into further weakness if it eventuates but we would be buying into dips if we held no position."
The main ASX stock involved with gold production that he would buy now is Northern Star Resources Ltd (ASX: NST), especially if it falls to around the $10 mark.
The share price closed Wednesday at $10.35.
"Similarly we like Evolution Mining Ltd (ASX: EVN) ~$2.70, but following its average result we would be more likely to opt for Northern Star."
Evolution shares finished Wednesday at $2.76.
Is an old solution the new solution?
As for the energy crisis, nuclear power generation is coming back into favour in many countries as a way to instantly bolster their home-grown supply.
This has seen a revival in investor interest for uranium producers.
"A lot of moving parts are involved when it comes to the uranium price but appetite is building as other energy costs rise as the world strives to move away from fossil fuels," said Gerrish in another Market Matters Q&A.
"We are bullish uranium moving forward although when [it] starts to really gain traction is hard to forecast due to the uncertain geo-political backdrop."
Gerrish named two ASX shares that he would buy to gain exposure to uranium.
"Paladin Energy Ltd (ASX: PDN) and Boss Energy Ltd (ASX: BOE), they are both volatile stocks which we like into dips."
Gerrish's team would be tempted to buy when Paladin sneaks under the 70 cent mark and Boss dips below $2.50.
They closed Wednesday at 66.5 cents and $2.36 respectively.
The Market Matters team already owns Paladin Energy in its emerging companies portfolio.
