If you've been following US and ASX shares even casually this year, it would be apparent markets have been in turmoil.
After dropping 10% during January, a slight reprieve the past few days has seen the S&P/ASX 200 Index (ASX: XJO) still shave almost 7% off since the year started.
Across the Pacific, the NASDAQ-100 (NASDAQ: NDX) has tumbled a horrible 12.3% over the same five weeks.
Yikes.
And that's just on the fear of interest rate rises. Rates actually haven't gone up yet.
So with further volatility expected in 2022, what are the ASX shares that might be able to minimise the grey hairs this year?
A couple of experts answered that very question this week.
Image source: Getty Images
Packaging life's essentials
Elston Asset Management portfolio manager Bruce Williams nominated Amcor CDI (ASX: AMC) as the stock that could endure a stormy 2022.
"It's a packaging business that is dominant in what it does, in each of the markets in which it participates," he told Livewire.
"It generates excellent cash flow. It's building its technology around sustainable and recyclable packaging."
Williams likes the essential nature of its clientele.
"The basis of its business is consumer staples, so things like healthcare, food, those sorts of things," he said.
"We think it's just a terrific defensive position that — through a combination of capital growth, dividends and buybacks — will generate consistent returns for investors for the foreseeable future."
Amcor shares have gained almost 15% over the past 12 months. The stock closed Friday at $16.66.
No matter what the stock market does, Australians still have to eat
The operator of the IGA supermarket brand, Metcash Limited (ASX: MTS), is Investors Mutual senior portfolio manager Simon Conn's tip.
"We think it's an underappreciated franchise, and a business that's no doubt benefited from COVID, but I think that's delivered enduring benefits to their food business," he said.
"The liquor business has been growing and is a very resilient business. But really it's the hardware business — where they position themselves as the second player in the hardware, retail and wholesale markets — that we think is underappreciated by investors."
Metcash shares have performed nicely over the past year, gaining more than 21% while handing out a 4.8% dividend yield.
However, the stock has plummeted in excess of 7% to start this year, perhaps opening up a nice buying opportunity.
"Local consumers are spending more in their local communities, and we think that will continue to a large extent, going forward," Conn said.
"It's really attractively priced on [a PE ratio of] 13 times… with a really strong balance sheet. For us, it looks like a standout in the market, where a lot of stocks look pretty fully priced."
The Metcash share price closed Friday at $4.17.
