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Key points:
Market volatility prompts a focus on capital stable stocks like Dalrymple Bay Infrastructure (ASX:DBI) Amcor (ASX:AMC) and Brambles (ASX:BXB) seen as defensive plays with strong customer bases Artificial intelligence shares expected to deliver long-term growth Positive on La Vista and Universal Store for global expansion and resilience - Gold and gold miners viewed as offering further potential upside
Fergus Humble from Morgans points to a notable rise in market volatility throughout November, attributing this shift to increased scepticism around the AI trade and uncertainty regarding interest rate cuts from the Federal Reserve. Humble suggests this environment calls for more capital stable stocks, highlighting Dalrymple Bay Infrastructure (ASX:DBI) as a preferred option for risk-averse portfolios. He emphasises its defensive earnings, robust dividend, CPI protection, and take-or-pay contracts, offering stability even as the broader All Ordinaries Index has declined.
When considering other defensive plays, Humble identifies Amcor (ASX:AMC) and Brambles (ASX:BXB) as reliable additions. Humble says Amcor provides solid exposure to fast-moving consumer goods packaging, boasting a strong yield and reiterating positive guidance. Brambles is described as a steady performer in the logistics sector, with long-term value for portfolios needing defensive qualities in volatile times.
Looking forward, Humble remains optimistic on the long-term potential of AI shares, predicting the sector’s momentum will unfold across several years rather than in a short-term surge. In consumer discretionary, Humble is positive on La Vista and Universal Store, praising strong global store growth and margin resilience. He also notes continued interest in gold and gold miners, seeing further upside for investors.
