The energy and bank sectors are the sectors I would avoid for...

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    The energy and bank sectors are the sectors I would avoid for the next few years.

    Oil is not going to rebound strongly, in fact it probably would go further south for two reasons, economic recovery will be anemic and secondly but more importantly the advent of electric vehicles (EV) playing a stronger and more dominant role in the vehicle market.

    As for the banking sector, the sector will also reel under increasing loan defaults, loan margin squeeze with rates staying low for longer and increasing competition from the fintechs that appeal stronger with the new generation.

    For that matter, both energy and banking stocks are about to be legacy businesses in the horizon out, value stocks may not return to outperform growth.

    All bank stocks except NAB, are on the brink of breaking below their recent low levels, CBA @ $63.68 in early June, ANZ already on the brink @$17.22 (late July) and WBC @$16.48 in late July.

    If bank stocks are not going to perform well and the commodity run on commodity stocks like BHP and FMG ends when China completes its stockpiling, then the ASX index is not going to go anywhere. Which is why it is my belief that the XJO will not see a 7 in front of it for many years.

    But that does not mean one cannot do well in the stockmarket - with limited resources, one has to be in the right sectors , sectors of growth that can outshine and be relatively immune to the economic malaise. Those sectors are Gold, the new economy stocks and stocks that can capitalise on the EV (electric vehicle) market boom , and IMO it pays to be exposed in the smallcap stocks that ride on the coat tails of these growth opportunities. However, one must be wary about many corporate shenanigans only interested to boost their stock prices with empty undelivered promises to gain immensely from their stock options.

    Personally I like the quiet achievers , with achievements to show but less drama and they are not stocks that is most popular on HC forums, EVS is one such stock as I highlighted in this thread before (see below).

    https://hotcopper.com.au/threads/its-over.4002109/page-5546?post_id=47397560#.X2QbpBAzapo
 
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