Fidelity has identified three sectors that are attractively priced for investors looking to pick up blue-chip stocks at cheap prices following the COVID-19 fallout.
Many stocks had seen their share price decimated in recent weeks with some falling by as much as 40%-50%.
Fidelity Australian Equities fund manager Paul Taylor said this made it a great time for investors to pick stocks up cheaply.
“This is an opportunity to upgrade and buy those things which you have always wanted to own, so long as it has a good structural outlook then this is an opportunity. This is a real good opportunity to buy cheap stocks that will perform well over the next 5-10 years.”
He said resources, technology and travel all presented good options for investors looking for cheap stocks. Resources firm BHP Billiton fell 12% in one day and lost its position as the largest company in the ASX, replaced by biotech firm CSL.
“The market has come down [for resources] and they are looking attractively valued, they are cheap with strong balance sheets and good cashflow. Lots of projects are being cancelled or delayed so the balance sheets are in better than they would have been,” Taylor said.
“Technology has been hard hit and is linked to global growth. Travel has been the hardest-hit sector, we expect to see a lot more volatility in this...