While AI-related investments have dominated investor portfolios in 2024, other sectors are emerging as promising opportunities. Janus Henderson Investors portfolio manager Jeremiah Buckley joins Wealth! to shed light on these alternative investments.
Buckley highlights several sectors worthy of investor attention. He points to healthcare, citing innovations in biotechnology and medical devices as growth drivers. In the consumer discretionary sector, Buckley recommends e-commerce and travel-related plays. Additionally, he sees promise in capital markets.
Emphasizing the versatility of healthcare investments, Buckley describes the sector as both a defensive and offensive play. “There’s attractive growth opportunities,” he states, while also noting its potential to shield investors from market volatility.
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
This post was written by Angel Smith
Video Transcript
Well, we’re keeping a close eye on semiconductors here this morning.
The sector seeing a little bit of pressure after Mike’s Q three earnings were overshadowed by the company’s Q four guidance falling short of A I driven growth expectations.
And while the A I fueled rally has pushed broader markets to new heights this year.
Let’s not forget about some of the other that could enhance your portfolio here with more is Jeremiah Buckley, who is the Janice Henderson investors portfolio manager.
Great to have you here with us, Jeremiah.
I mean, there’s been so much crowding into the tech trade, especially within the theme of generative A I.
But where else are you sensing some opportunities right now?
Yeah, thanks Brad.
Thanks for having me on.
I appreciate it.
Uh So there are other areas of the market that we’re excited about as well.
So uh one example would be health care.
So we’re seeing lots of innovation and biotech as well as medical devices, uh which continues to be exciting and we’re seeing uh good growth there.
Uh We’re also excited about uh areas of consumer discretionary.
So we think e-commerce continues to grow at a rapid rate.
Um But we also think that cash rich consumers are really in a good position right now.
Uh And so, one of the areas that we like is travel, uh we continue to see strong recovery globally.
And so those companies that are exposed to global travel trends uh continue to be favorable for us.
And, and the last one, a more kind of value oriented uh area of the market is uh capital markets.
You know, we’ve seen a couple of years of uh weak capital market activity.
Uh We think with interest rates, stabilizing a lot of pent up demand, we’ll start to see an improvement in capital markets as well.
And so some of the investment banks are a lot of the companies that facilitate capital markets activity.
Uh We think are also attractive here.
You know, it’s interesting, we were, we were speaking earlier today with uh Kevin Gordon of Charles Schwab who was talking about one of those sectors that you mentioned in health care.
And I just want to zero in on that for a second because he said as of yesterday and he was talking to us.
Um you know about some of the areas that he sees right now as as weak.
But ultimately saying only two sectors with less than half of their members are trading above the 200 day, moving average consumer staples and health care.
What what does that indicate to you?
Especially as you’re looking across sectors and trying to figure out where there still is some broadening that is yet to take place.
Yeah, so the market has certainly been more aggressive.
And so the two sectors that you name are are certainly more defensive sectors.
And so they, they’ve trailed this as people have shifted uh capital to the higher growth sectors like technology and communications.
But we, we think that there’s uh attractive growth opportunities like I mentioned in in biotech and and me devices.
Um there’s a lot of innovation, you see companies that are growing, you know, high single digits, low double digits.
And so we think health care can be both defensive uh if we do have some volatility in the markets, but it also is offensive in that a lot of companies are innovating and driving good and attractive growth.
You, you also mentioned travel a moment ago, one of my favorite sectors to talk about here and continue to track when you look across what the difficulties are for maintaining margins right now.
And especially as many of the airlines, if we’re looking at that particular subset of the sector as well, are trying to figure out their own routes, their schedules and the ability to take on new aircraft.
How much of a concern does that kind of present as you’re evaluating the overall health of that industry?
Yeah, so uh we’re focused more on our ownership is in hotels as well as the OTAs like booking holdings.
Um We think those are better business models than the airlines, but obviously the airlines are an important aspect of making sure that we have enough supply.
Uh so people can uh fly to those hotels.
Um As far as the airlines, I think we’re seeing differentiated results between the domestic focused airlines as well as the global airlines.
Um A lot of our thesis around the travel recovery is outside the US.
Uh I think we’re back to a normal trend line in the US.
And so with the those capacity additions for the airlines that’s led to some difficulty for those uh US focused airlines.
But if you look at the global airlines like a Delta or United, uh they’ve had better results.
Um And that, that’s a big part of our thesis is that global travel recovery, Jeremiah Buckley, who is the Janice Henderson investors, portfolio manager, Jeremiah.
Thanks so much for taking the time here with us today.
Thanks a lot for having me on.