5 ASX shares to ride out the 2022 volatility: expert

What are the 'reliables' that one can lean on right now?

| More on:
Target circle going down on a rollercoaster, symbolising volatility.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors have experienced much volatility already in 2022, and many experts predict the rest of the year won't be much smoother.

WAM Leaders Ltd (ASX: WLE) portfolio manager John Ayoub reckons portfolios are currently in "a game of 3D chess" at the moment.

"I say that because we are juggling rate movements, we are juggling coronavirus and now we are juggling more on Ukraine and Russia," he told a conference call to clients this month.

"From that perspective, it makes it awfully difficult to get a clear and confident path as to the shape of the portfolio for the next month, let alone for the next 6 to 12 months."

To combat the uncertainty, Ayoub is currently looking for very specific attributes in ASX shares he'll purchase.

"Two clear characteristics that the portfolio is now demonstrating a lot more than previously [are] quality and defensive earnings attributes," he said.

"That's really where we see our safe haven within the portfolio to ride out this volatility over the next little while."

The fab 5 to hold onto this year

Ayoub named 5 specific ASX shares that his fund has added recently that meet this "safe haven" definition:

The fund manager said his team has been taking advantage of a "dislocation in the market".

"We see their earnings, their ability to withstand the volatility of global events, particularly in the short-to-medium-term, as key drivers within the portfolio."

The 5 companies include merchants that provide staple products and those that will see a growth in activity and earnings regardless of interest rate rises.

"Staples [and] inflation beneficiaries are the areas of the portfolio which have become more present and more prominent," he said.

"We are at the coalface daily and managing risk and adapting as we get new information. That is what we are really focused on right now."

WAM Leaders itself has gained 2% this year so far to trade at $1.52 on Thursday afternoon. As of the end of February, the listed investment company was trading at a 3.4% premium to net tangible assets.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Broker Notes

A miner stands in front oh an excavator at a mine site
Broker Notes

Broker says buy the dip on ASX 200 uranium share with 69% upside

Shaw and Partners says this ASX uranium stock is trading at an attractive price point right now.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Broker Notes

Bell Potter says these ASX stocks are top buys

Let's see why the broker is feeling so bullish on these names.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Buy this ASX All Ords stock for huge returns and a great dividend yield

Bell Potter thinks this buy-rated stock could deliver the goods for investors over the next 12 months.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these stocks.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

Top broker says these ASX stocks can rise 35% in a year

Let's see why Bell Potter thinks these shares could rise strongly over the next 12 months.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

These ASX shares could rise 20% to 50%

Analysts are tipping these shares to rise strongly over the next 12 months.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

3 small-cap ASX healthcare shares 'with strong prospects'

Fund manager IML discusses why these 3 ASX healthcare shares are likely to rise in value.

Read more »