Travel tipped to bounce back

Investors are more resilient than some of the sectors they are investing in, according to the investment platform Sharesies AU, which has been looking at the top stock buys from 2021.

Brendan Doggett, country manager for Sharesies, says travel is a good investment because many travel brands are undervalued.

“These are still the brands that Australians know and love. It’s no secret that there’s pent-up demand for travel, and the likelihood that these travel companies will get their business back and perform is there.

”From our top buys, we know Qantas and Flight Centre are popular choices among Sharesies investors and these are well-known Australian companies who’ve experienced ups and downs before.”

Even after choosing the sector, choosing the right company can be a challenge. “Regardless of the sector, I encourage investors to do their research,” says Doggett. “While market performance may be at the forefront of your decision, consider which businesses you think have the ability to ride out the uncertainty plaguing the sector and conduct themselves in a way that aligns with your personal values.”

He also recommends investors have a have a long-term focus. “Can you commit to and invest in that company for the next five to 10 years?”

His top travel tips are Qantas and Flight Centre. “Australians love these companies. They’re well known to us and travel is a quintessential part of Australian culture.”

In other sectors Doggett is looking at Apple. “It’s the market darling when we think about technology. Many of us use their products, so investing in the brand feels somewhat tangible for many Australians.” Electric car maker Tesla is also on his radar “because it’s a combination of a few things: a great brand, great ideas, great execution and new technology”.