Where I'm going to invest in ASX shares in 2024

This is where I'm expecting to invest next year.

Tristan Harrison

Author Bio Tristan Harrison has a decade of experience as an ASX share investment writer and was previously a business, tax and audit accountant for seven years. Tristan has contributed to The Motley Fool since October 2016. He has an advanced diploma from the Association of Accounting Technicians and is currently enrolled in the Chartered Institute Management Accountant (CIMA) program. Tristan's goal is to help Australians learn about great ASX shares that can help grow their portfolio, wealth and dividends over the long-term. Areas of Expertise ASX dividend shares and passive income strategies ASX growth shares and ETFs Business and company financial analysis Franking credits and personal tax topics Personal finance Education Advanced diploma from the Association of Accounting Technicians Enrolled in the Chartered Institute Management Accountant (CIMA) program Social Media X/Twitter Favorite Investment Quote "Live within your income and save so that you can invest." — Charlie Munger

Published December 29, 2023 2:53 pm AEDT

The ASX share market has had a great year and I currently believe 2024 could be another good year. In this article, I'm going to talk about where I'm planning to invest.

I'm usually an optimistic person about the share market in the longer term – that's why I invest so regularly! There's no guarantee the ASX share market will go up, but it does have a history of going up over time as businesses collectively grow profits.

However, I'm not suggesting that every business' profit and every share price is going to rise in 2024 or over the rest of the decade, but plenty could do well.

Woman looking at a phone with stock market bars in the background. — Image source: Getty Images

Where I'm expecting to invest in ASX shares in 2024

I haven't completely decided where to invest next year, that will depend on where I see opportunities. A number of new names entered my portfolio a few months ago, most of which have done well so far, thanks to the fortunate timing of a market rally.

There may be periods of time where the entire market falls during 2024, or individual companies suffer after an update that disappoints the market.

Plenty of ASX shares have gone up significantly in value in 2023, though it could be a mistake to think they can't rise any more in 2024 (or during the rest of the decade).

I think there could be opportunities in the ASX defensive share space, particularly ones that produce strong, reliable cash flow. Interest rates potentially falling could be a boost for valuations, while defensive earnings could be attractive if there are any widespread economic difficulties because of impacts from the high interest rates and inflation.

With that in mind, I'm thinking about businesses like Rural Funds Group (ASX: RFF) and APA Group (ASX: APA).

I also think there's an opportunity for fund managers to outperform the market in the next few years if they can start attracting more funds under management (FUM) inflows. Rising share prices can be an organic boost for the FUM too.

There's one particular ASX share investment I think I'm going to buy a lot of, but I'll talk about that in another article in the next few days.

Regardless of what I'm going to invest in, I am committed to investing regularly next year and I'd suggest that everyone invest next year too, if personal finances allow.

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