Interesting chat from James Marlay at Livewire today on market...

Interesting chat from James Marlay at Livewire today on market sectors to look for investment opportunities in the current environment.

They rule out retail and anything consumer-facing/ discretionary spend, cautious on healthcare.

Gary Rollo from Montgomery:

I would look in tech that's exposed to enterprise spending, and that is cloud-related names and data centres.You can find good businesses with solid business models. And actually, the sector fundamentals are super strong. Those big three hyper-scale companies that provide the base DNA for cloud technologies, their businesses are still growing at 35%.

Spending's not missed a beat because the enterprise is facing the same challenges that the consumer is. It needs to improve its flexibility and lower its unit costs. And the answer to that is technology in the cloud. And they're still spending and spending hard.

There are some good business models in small-caps in that space. That's where I'd start. That's where I'd be looking. And funnily enough, those stocks are all being sold off too. Not to the same extent as the consumers, but look, high grade your portfolio. Get into something with much better fundamentals at a cheaper price. That's the name of the game in investing.

https://www.livewiremarkets.com/wires/the-small-cap-sectors-to-avoid-and-where-to-invest