Stock market pundits eye 2022, and beyond – 7NEWS.com.au

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There's nothing more certain than more volatility.
Climate-savvy investment and the pace of the post-pandemic rebound are key themes for 2022 as equity strategists start to place their bets.
Australia's stock market, still dominated by fossil fuel firms and banks, could be set for a shake-up from investors wanting less carbon and more integrity.
"Any change brings opportunity, and the larger the change the larger the opportunity," ANZ chief economist Richard Yetsenga said after the United Nations COP26 climate talks held in Glasgow.
"The implications are material. Businesses now have more certainty. But investment, fiscal policy and price signals are going to be needed."
Paul Xiradis, executive chairman and head of equities, at fund manager Ausbil said the shift towards decarbonisation would see significantly more commitment following COP26.
The market veteran told AAP this offered compelling opportunities in the electrification and battery materials metals – copper, nickel, lithium and cobalt.
"We like BHP as a diversified exposure to these themes, companies like OZ Minerals and 29 Metals in copper and zinc, Orocobre in lithium, and IGO in nickel and lithium."
He said Macquarie Group also offers good exposure to the decarbonisation and the push to electrify everything.
Meanwhile the Australian Energy Regulator has warned against investing in new gas.
The regulator said in an information paper that falling demand could mean gas infrastructure becomes a stranded asset – which means it would be written-off as having no value.
"As the impact of climate change is increasingly felt, there is growing social pressure on corporations to invest and operate in a way that is consistent with environmental sustainability as part of their corporate social responsibilities," the paper said.
Climate-related shareholder activism is also on the rise.
AustralianSuper, the largest superannuation and pension fund with one in ten Australian workers as members, has made a commitment to achieve net zero carbon emissions by 2050 in its investment portfolio.
The International Energy Agency suggests clean energy investment must more than triple from current global levels to around US$4 trillion ($A3 trillion) per year.
"It doesn't stop there," ANZ's Mr Yetsenga said.
Some cities are rethinking transit to reduce demand for infrastructure and energy.
"Healthcare, so central to dealing with the human costs of the pandemic, faces its own climate pressures," he said.
If the global healthcare sector were a country, it would be the fifth-largest emitter of greenhouse gases.
That doesn't stop investors backing Australia's health sector giants such as CSL for its large unassailable business models.
Ausbil also likes the major banks, NAB and CBA in particular as they benefit in positive economic growth conditions, when interest rates are rising, and have strong capital positions.
General insurers will benefit from stronger margins and returns, with companies like QBE of interest, Mr Xiradis said.
Post-lockdown, with borders reopening he also expects positive earning growth outlooks for companies like Qantas, Webjet and Seek.
Travel, entertainment, dining and other leisure services are expected to benefit from pent-up demand.
Nor is the market seen as over-valued despite this year's uptrend.
"We do not believe Australian equities are too expensive on average when you consider them in relative terms against where long-term interest rates are sitting, and their forward earnings growth outlook," he said.
Macquarie Securities analyst Matthew Brooks says the share market has benefited from the stay-at-home economy and massive stimulus during the pandemic.
"As the pandemic ends, growth momentum will switch to services, some of which will boom," he said.
But 2022 could decelerate in the so-called goods economy – including housing, manufacturing and commodities – as they have already had a boost.
Macquarie Securities, anticipating less exuberance next year, tips Ramsay Health Care, along with Cochlear and Healius in health, Coles in consumer staples, Charter Hall in real estate, Amcor in packaging and Suncorp and IAG in insurance .
"We don't expect the downturn phase to be a recession, but investors should be prepared for volatility next year," Mr Brooks said.

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