Bell Potter's top stock picks for 2024

As a volatile and black-swan-filled 2023 draws to a close, our top analysts have compiled their highest conviction stock picks for the year ahead. The ASX 200 will likely finish the year with a total return gain of close to 10% - which is remarkable given the COVID-19 pandemic was immediately followed by unprecedented monetary tightening, geopolitical flare-ups, an economic slowdown, and instability in the broader financial system. 

In this wire, we'll highlight stocks from each of the major sectors on the ASX. In many cases, one theme has dominated the selling but it is individual stock-picking and balance sheet analysis that will separate the winners and losers next year.

In the Listed Investment Companies (LICs) space, analyst Hayden Nicholson believes that these companies have hit cyclical lows. Two of the three funds that have been recommended by Nicholson this year reflect what investors are seeking so much of - solid returns and just as importantly, stable income through dividends.

Similarly in the doldrums, the diversified financials space struggled in 2023, held back by subdued equity markets, fund outflows, and interest rate increases. But we also feel the sector has been sold down fairly indiscriminately. For our key picks, we look to strong businesses with growth strategies that are capable of delivering better-than-expected figures and that trade below our fair value.

And as for a major sector brutally affected by interest rates, you would be hard-pressed to find one more so than the ASX REITs. While valuations are undemanding, we think there are three more themes that investors should be paying close attention to.

In the always-popular technology sector, the consistent increases in interest rates both domestically and internationally over the last 18 months now appear to be nearing or at an end. In addition, the US tech sector has rallied hard this year and we feel it is now time for the Australian tech sector to do the same. Our top three picks reflect both consumer and business-end clients who all have one thing in common - growth plans for new markets. 

And speaking of consumers, the ASX retail sector has also been hit by the tougher macro environment in 2023. But not all retail is the same - far from it. Our top three picks reflect the diversity of this ever-changing sector.

To see the rest of the stock picks, you can click the PDF below.