The most important sectors for investors in 2024

While AI-related investments dominate investor portfolios in 2024, other sectors are emerging as promising opportunities. Janus Henderson Investors Portfolio Manager Jeremiah Buckley Joins Wealth! shed light on these alternative investments.

Buckley points to several sectors worthy of investors’ attention. He points to health care as growth factors, mentioning innovations in biotechnology and medical devices. In the consumer goods sector, Buckley recommends fun activities related to e-commerce and travel. Additionally, capital markets are promising for him.

Highlighting the versatility of healthcare investing, Buckley describes the sector as both a defensive and offensive play. “There are attractive growth opportunities,” he says, while noting its potential to protect investors from market volatility.

For more expert insights and the latest market action, click here to watch the full episode of Wealth!

This post was written by Angel Smith

Video transcription

Well, we’re taking a close look at semiconductors this morning.

The sector is feeling a bit of pressure after Mike’s third-quarter earnings were overshadowed by the company’s fourth-quarter guidance, which fell short of expectations for AI-powered growth.

And while the AI-powered rally has taken broader markets to new heights this year.

Let’s not forget about the other people who can add more value to your portfolio, Jeremiah Buckley is the portfolio manager for Janice Henderson’s investors.

It’s great to have you here with us, Jeremiah.

I mean, there’s been a huge influx of new technologies into the tech industry, especially in the area of ​​generative artificial intelligence.

But where else do you sense opportunities right now?

Yes, thanks Brad.

Thank you for inviting me.

I appreciate it.

Uh. So there are other areas of the market that we’re excited about as well.

One example would be health care.

So we’re seeing a lot of innovation and biotechnology as well as medical devices, which continues to be exciting and we’re seeing good growth there.

Uh. We’re also excited about uh consumer freedom areas.

We therefore believe that e-commerce continues to grow at a rapid pace.

Um, but we also think that cash-rich consumers are in a really good position right now.

So, one of the areas we like is traveling. We continue to see a strong recovery across the globe.

So those companies that are exposed to global travel trends continue to be beneficial to us.

And lastly, the more value-oriented market area is capital markets.

You know, we’ve seen several years of weak capital market activity.

The story continues

Uh. We believe that interest rates will stabilize much of the pent-up demand and we will start to see improvements in capital markets as well.

And so some investment banks are many companies that facilitate activities in capital markets.

We think we are attractive here too.

You know, it’s interesting, we talked earlier today with Kevin Gordon from Charles Schwab, and he was talking about one of those sectors that you mentioned, healthcare.

And I want to focus on that for a moment because he said that yesterday and he talked to us.

Um, you know some of the areas that he sees as weak right now.

Ultimately, however, it is concluded that only two sectors with less than half of their members have turnover above 200 days, and the moving average includes consumer staples and healthcare.

What does this mean for you?

Especially when you look at different sectors and try to figure out where there is still some broadening that hasn’t happened yet.

Yes, so the market has certainly been more aggressive.

So the two sectors that you mentioned are certainly the more defensive sectors.

And so they did, as people moved capital into higher growth sectors like technology and communications.

But we, we think there are attractive development opportunities that I mentioned in the field of biotechnology and “me” devices.

Well, there’s a lot of innovation, you see companies that are growing, you know, high single digits, low double digits.

Therefore, we believe that healthcare can be both defensive, if we are dealing with some volatility in the markets, and offensive, as many companies innovate and deliver good and attractive growth.

You also just mentioned travel, one of my favorite sectors to talk about here and which I will continue to follow, looking at the current difficulties in maintaining margins.

Especially since many airlines, if we also consider this particular subset of the sector, are trying to establish their own routes, flight schedules and the ability to operate new aircraft.

How concerning is this in the context of assessing the overall condition of the industry?

Yeah, so we’re focusing more on our property in hotels and also on OTAs like reservations.

Hmm. We believe these are better business models than airlines, but of course airlines play an important role in ensuring sufficient supply.

Oh, so people could fly to these hotels.

Um, on the airline side, I think we see mixed results between domestically focused airlines and global airlines.

Um, a lot of our thesis on travel recovery is based outside the United States.

Uh, I think we’re back to a normal trend line in the US.

And so with airline capacity increases, which has led to some difficulties for U.S.-focused airlines.

But if you look at global airlines like Delta and United, you can see that they are performing better.

Hmm. And that’s a big part of our thesis: the global recovery in the travel industry, Jeremiah Buckley, aka investor Janice Henderson, portfolio manager, Jeremiah.

Thank you very much for spending time with us today.

Thanks so much for inviting me.