Global stock opportunities: from defence to defensive

Описание: Elfreda Jonker of Alphinity Investment Management outlines the impact of ongoing geopolitical tensions, particularly the US-Iran conflict, on market volatility and investment strategy. Jonker notes large repricing movements in oil and the spillover effects on growth, inflation, and interest rates. While considering market turbulence as an opportunity to reinforce investment processes, Jonker emphasises maintaining exposure to defensive stocks, especially as cyclicals have recently outperformed defensives. Notable defensive holdings mentioned include Costco, Coca Cola, and Walmart.

Jonker highlights a significant rise in global defence spending, referencing NATO’s increased GDP allocation target, and points to opportunities beyond traditional defence manufacturers like BAE. Companies such as Motorola Solutions, ABB, Parker-Hannifin, and Caterpillar are identified as key beneficiaries within the broader defence ecosystem, serving essential roles from communication infrastructure to industrial automation.

Turning to technology and AI, Jonker sees select opportunities amid recent volatility. Microsoft (NASDAQ: MSFT) and ServiceNow remain core holdings due to their integration of AI and strong cloud offerings, while Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOGL), and Meta (NASDAQ:META) present compelling cases after recent pullbacks. Additionally, Jonker reveals a new position in Welltower, capitalising on demographic tailwinds and innovative technology for senior living real estate.