Invest
Top 4 investor favourites to watch this election
Four industries are at the centre of election campaigning, which will have a knock-on impact to investor portfolios in the lead up to and following this year’s federal election.
Top 4 investor favourites to watch this election
Four industries are at the centre of election campaigning, which will have a knock-on impact to investor portfolios in the lead up to and following this year’s federal election.
Although there’s been a heavy focus on the tax policies of both sides of government, there are some key financial considerations for investors who have exposure to four industries that are the subject of reform and funding changes, according to Dermot Ryan from AMP.
Energy
The energy sector is shaping up as an opportunity for investors, with both sides of government announcing policies that will shape its future.
For example, both political parties are looking to lower the price of electricity for both businesses and households.
“Lack of investment in both gas exploration and electricity generation, any new government is going to be looking to firm up a policy around this and encourage investment,” said Mr Ryan.
Infrastructure
The current government has already announced $100 billion in infrastructure spend over the next 10 years, which is about $25 billion more than current levels.
This represents a clear opportunity for investors to get in early in, for example, property markets that are set for major infrastructure upgrades.
Healthcare
The healthcare market could face new regulations pending the outcome of the election. If the Labor Party wins, health insurance rate increases will be capped at 2 per cent for two years, according to previous announcements.
“Healthcare may have some challenging impacts depending on who gets into power. There may be some changes on health insurance caps, as well as the spending allocation in the healthcare space” said Mr Ryan.
Housing
Housing price pain is another election battleground, with another 5 to 10 per cent fall predicted nationally by AMP by 2020.
Labor, if elected, has announced that it wants to tighten up negative gearing and limit it to new properties from 1 January 2020. They also want to reduce or cut in half capital gains discounts for all assets after that date.
The International Monetary Fund has warned that the housing downturn is worse than previously expected, and AMP believes government and policymakers may address these falls.
If so, this will create opportunities on either the retail side or property developers to potentially capitalise on these gains.
In the meantime
The lead up to the election has created significant uncertainty for investors. Ideally for investors, whoever wins gets a strong majority to have the power to mandate policy to create certainty in the market.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author
About the author
Stock market
Is climate change the next big investment theme?
Investors looking to outperform the market are being urged to look at structural growth, with climate change likely to create the biggest investment opportunity since the internet, an industry expert ...Read more
Stock market
All Ords set for new record by February, analyst predicts
The Australian market is likely to reach a new record in the early months of the year, with a win on the health front likely to offset geopolitical issues, an analyst has stated. ...Read more
Stock market
Aussies flock to fixed interest and ETP products for stable returns
Investors seeking stability during the COVID-19 pandemic have turned to fixed interest and cash exchange-traded products, new research has revealed. ...Read more
Stock market
Emerging market equities gain traction in post-pandemic world
Emerging market equities are making a comeback as technology-savvy consumers flock to capitalise on new opportunities that the 2020 pandemic may have made too attractive to ignore. ...Read more
Stock market
Is it too late to start investing in market index ETFs?
With the Australian market recovering its losses since the pandemic began, nestegg asked an industry expert if it was too late for investors to begin their investing journey. ...Read more
Stock market
Is it time to buy reopening stocks?
Investors are being advised to look into stocks that could benefit from markets reopening, an analyst has stated. ...Read more
Stock market
Stocks to watch in 2021
Easing political uncertainty, new vaccine hopes, central bank’s willingness to do all it takes and more, and new stimulus packages are likely to act as tailwinds for investors, an analyst has said. ...Read more
Stock market
Australia’s October stock picks revealed
Australian retail investors piled predominantly into high-growth industries such as electric vehicles stocks, cloud computing and recent third quarter IPOs during the month of October, new research ha...Read more
Stock market
Is climate change the next big investment theme?
Investors looking to outperform the market are being urged to look at structural growth, with climate change likely to create the biggest investment opportunity since the internet, an industry expert ...Read more
Stock market
All Ords set for new record by February, analyst predicts
The Australian market is likely to reach a new record in the early months of the year, with a win on the health front likely to offset geopolitical issues, an analyst has stated. ...Read more
Stock market
Aussies flock to fixed interest and ETP products for stable returns
Investors seeking stability during the COVID-19 pandemic have turned to fixed interest and cash exchange-traded products, new research has revealed. ...Read more
Stock market
Emerging market equities gain traction in post-pandemic world
Emerging market equities are making a comeback as technology-savvy consumers flock to capitalise on new opportunities that the 2020 pandemic may have made too attractive to ignore. ...Read more
Stock market
Is it too late to start investing in market index ETFs?
With the Australian market recovering its losses since the pandemic began, nestegg asked an industry expert if it was too late for investors to begin their investing journey. ...Read more
Stock market
Is it time to buy reopening stocks?
Investors are being advised to look into stocks that could benefit from markets reopening, an analyst has stated. ...Read more
Stock market
Stocks to watch in 2021
Easing political uncertainty, new vaccine hopes, central bank’s willingness to do all it takes and more, and new stimulus packages are likely to act as tailwinds for investors, an analyst has said. ...Read more
Stock market
Australia’s October stock picks revealed
Australian retail investors piled predominantly into high-growth industries such as electric vehicles stocks, cloud computing and recent third quarter IPOs during the month of October, new research ha...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
