While some sectors and companies might not be considered "fashionable", ASX investors can't let such prejudices cloud their judgement.
Because if you want your portfolio to grow, all that matters are the prospects for the businesses.
Even if the goods or services produced are "boring", if they are essential to the lives of consumers then the associated ASX shares have to be at least considered.
That case is even more pertinent in 2023 as the Australian and global economy battle very dark clouds.
As an example, Marcus Today market analyst Matthew Lattin named two ASX shares this week that he would buy right now:
Image source: Getty Images
'We anticipate organic growth'
It doesn't get much more unfashionable than insurance.
But the reality is that it's a reliable sector in times of turbulence.
Insurance is a service that still sees strong demand through tough economic times, and insurers earn superior returns on collected premiums when interest rates are high.
Lattin thus likes the look of QBE Insurance Group Ltd (ASX: QBE).
"QBE's recent underwriting performance against a backdrop of heightened inflation, geopolitical tensions and elevated catastrophes demonstrates resilience," Lattin told The Bull.
"We anticipate organic growth and increasing premiums moving forward."
The numbers coming out of reporting season last month were positive.
"Gross written premiums of US$20.054 billion in fiscal year 2022 were up 13% on the prior corresponding period," said Lattin.
"Statutory net profit after tax rose from US$750 million in fiscal year 2021 to US$770 million in fiscal year 2022."
The QBE share price has risen 27% over the past 12 months, while paying out a dividend yield of 2.8%.
Signs of a massive turnaround
It's been tough going for TPG Telecom Ltd (ASX: TPG) shares.
The company listed on the ASX in July 2020 after a merger of TPG and Vodafone Australia. Unfortunately, the stock has lost a painful 42.6% from the closing price on its first day.
Telecommunications might be a service with evergreen demand, but it's not easy competing as the number three player in a country with a fairly small population.
But the stock is showing signs of life in 2023, heading up 2.58% year to date.
"In our view, TPG has significant growth potential."
Lattin thought the results from reporting season were "relatively strong".
"Service revenue of $4.439 billion was up 1.5% on the prior corresponding period," he said.
"Mobile subscribers grew by 300,000 in 2022. Average revenue per user for mobiles was up 1.9% to $32.40 a month, mostly reflecting higher international roaming levels."
Earlier this month Morgans analyst Andrew Tang agreed with Lattin's bullishness on TPG.
"This was the first time since merging that positive earnings momentum is obvious across the group."
