Bell Potter’s top stock picks for 2023

In listed funds, Hayden Nicholson notes that defensive protection has been provided by cyclical and high beta segments of the market, and less so from traditional defensives. As such, the picks this year have focused on utilising the experience of professional investment managers to better enhance return potential through a possible recession or adapt to changing market conditions. 

Tech stocks (and long-duration stocks in general) have had a year to forget in 2022. Given the high likelihood that interest rates will continue to rise or at least remain elevated, analysts  Chris Savage and Michael Ardrey are putting increased emphasis this year on stocks with reasonable cash flows now or in the short term and which also have reasonable to strong growth outlooks.

"We believe these sorts of stocks will perform well – even in a rising interest rate environment – given the outlook of slowing growth and the risk of recession globally."

Energy markets, meanwhile, are expected to remain volatile. Shifting supply chains due to the Russia-Ukraine war combined with increased consumption through winter will continue to fuel demand, according to analysts. But not indefinitely. 

Bell's analysts favour uranium and gas producers, and offer up two companies "with a proven track record of production and de-risked assets."