The sectors and asset classes Livewire readers tip will outperform in 2025

In the past few years, technology has stormed up the charts. It has not just helped propel the share market to record highs locally. It has also overtaken banking and mining as the largest contributor to the Australian economy. As we start to watch the euphoria around AI calm down, does that mean tech has finally hit the peak or is there more to come? Howard Marks has his views and he shared some of that in the following wire:

Education

Howard Marks' 4 signs of the top (and other incredibly pertinent lessons for 2025)

View

Similarly, IML’s Daniel Moore argues that warning signs are flashing and it’s getting riskier to own expensive growth stocks, encouraging investors to focus back on valuations.

On the flip side, many experts have argued that valuations in some of the largest tech firms is justified and there may be more to come.

For example, Swell Asset Management’s Sally Fang analysed the fundamentals of the Magnificent Seven late last year, concluding that is still a lot to be positive about despite the headwinds.

In Livewire’s Outlook Series, the experts tipped more niche areas of tech to outperform this year, such as Ellerston Capital’s James Barker who believed there were solid growth options in tech stocks at the small end of the market, Pendal Group’s Rachel Folder who focused on the tech end of the energy transition and Regal Funds Management’s Jessica Farr-Jones who nominated biotechnology.

Tying into this discussion is, of course, the global environment: the prospect of local rate cuts, looming geopolitical wildcards (from our own upcoming Federal Election as well as what may come to pass from US President Trump’s inauguration) and the myriad of structural issues that continue to plague us from housing affordability to the climate crisis.

We know what the experts think, but are readers still backing tech – and if not, where are the hot spots for outperformance this year?

We asked you that in the Outlook Series Survey for 2025 and it paints an interesting picture of global activity and investor behaviour.

Which sectors or assets will outperform in 2025?

Livewire readers are still backing growth – and if the above list didn’t suggest that, then the fact that close to half plan to buy growth stocks if the RBA cuts rates and only around a quarter of readers anticipate a value rotation away from tech would seal the deal.

Sector by sector breakdown

Tech remains the standout choice nominated by 54.4% of you. It continued to be a standout performer for 2024 after a breakout 2023. Conversely, cash and fixed income ranked low on the picks. That is not surprising given we have moved into a global easing cycle with rate cuts tipped to come locally later this year. Technology also featured heavily in the top-tipped growth stocks from readers for 2025.

In contrast, commodities have been a mixed bag. Energy is an interesting story, coming off a tough year. While the green transition is a trend well in play, demand for energy is rising exponentially – particularly when you consider the energy-hungry AI-boom. We are currently watching some of the biggest companies in the world build their own reactors to service their data centres – and geopolitical activity has seen supply challenges in parts of the world. Energy may have been the worst-performing sector for the ASX in 2024 but change could be afoot given 28.1% of readers certainly think it could be a hot spot.

To get more on the commodities trade, you can read this wire from Livewire's Carl Capolingua:

Equities

7 Magnificent Miners: The outlook for copper, iron ore, lithium, coal, gold, nickel and uranium

View

Healthcare is perhaps a less surprising pick for readers. The sector started to boom in late 2024 and the stage is well set for continued performance in 2025, with just over a quarter of readers seeing it as a hot spot. Within the sector, biotechnology remains a spot of interest but pathology names are also well positioned for growth. If you look at the top-tipped growth stocks from readers, the top 3 picks were from the healthcare sector – it’s clearly an area readers see opportunity in.

Over 20% of readers pointed to crypto as a potential outperformer. How the fortunes of cryptocurrency have changed in just a few years. After hitting highs in 2021, Bitcoin prices fell 50%, before recovering, then crashing again in 2022. Prices started climbing again in late 2023 and the appreciation continued to build over 2024 as the SEC permitted crypto ETFs to be listed. The US Dollar Bitcoin price crossed the $100,000 threshold following the election of US President Trump. Trump is favourable towards cryptocurrencies and is tipped to offer a more crypto-friendly regulatory environment.

Crypto just pipped gold in the reader picks. Gold offered stellar returns in 2024 off the back of both investor interest and central bank buying. State Street recently suggested in its Gold Outlook that gold’s positive run could continue this year – but either way, it’s worth remembering the precious metal is often viewed as a solid diversifier in a portfolio being uncorrelated to equities and bonds and acting as a store of value in inflationary periods and regardless of interest rate activity.

Hot spots and hot stocks/ETFs

While we’ll be offering a deep dive on the top-tipped stocks and ETFs from the survey, it’s also worth taking a look at which stocks readers nominated linked to where they expect outperformance. That is – how are our readers getting their exposure to the potential outperforming assets of 2025 – I’ve also included the top growth picks from our experts.

Here’s some of the top-tipped options for the top 5 assets/sectors.

1. Technology

Reader picks

• Life360 (ASX: 360)
• WiseTech Global (ASX: WTC)
• Technology One (ASX: TNE)
• Catapult Group (ASX: CAT)
• Betashares Nasdaq 100 ETF (ASX: NDQ)
• Global X FANG+ ETF (ASX: FANG)
• Betashares Global Cybersecurity ETF (ASX: HACK)

Expert picks:

• Life360 (ASX: 360)
• Technology One (ASX: TNE)
• Qorla (ASX: QOR)

2. Commodities

Reader picks

• Mineral Resources (ASX: MIN)
• BHP Group (ASX: BHP)
• Fortescue Metals (ASX: FMG)

• Boss Energy (ASX: BOE)

3. Energy

Reader picks

• Woodside Energy (ASX: WDS)

4. Healthcare

Reader picks

• CSL (ASX: CSL)
• Pro Medicus (ASX: PME)
• Telix Pharmaceuticals (ASX: TLX)

Expert picks:

• Cyclopharm (ASX: CYC)
• Paragon Care (ASX: PGC)

It’s worth noting that cryptocurrency options didn’t come up in the top-tipped reader picks or expert picks. For those looking for exposure to this, there are a range of options to research. There is direct purchase of cryptocurrency through a registered exchange as one option or some investors might look at exchange traded funds (ETFs).

Australian-listed ETF options include:

• DigitalX Bitcoin ETF (ASX: BTXX) 
• VanEck Bitcoin ETF (ASX: VBTC)
• Global X 21Shares Bitcoin ETF (CBOE: EBTC)
• Global X 21Shares Ethereum ETF (CBOE: EETH)
• Monochrome Bitcoin ETF (CBOE: IBTC)
• Monochrome Ethereum ETF (CBOE: IETH)

Does this match with your views on the assets or sectors likely to outperform in 2025? What stocks or funds are you using for exposure? 

Let us know in the comments below.