The Australian market has surged in price over the last six months as the global financial crisis has receded and there are plenty of hot stocks that still provide opportunity.
Australia is uniquely positioned with its large natural resources base and its proximity to China. This has allowed our market to be one of the best performers in recent times.
The question is, of course, what stocks are hot right now?
Some of the most obvious hot stocks have been the retailers, which have benefited from Australia’s strong employment market.
Earlier this year, there were extremely gloomy forecasts about how high unemployment would rise. But, employment levels have remained strong, and with more money in ordinary Australians’ pockets, they are out at the shopping centres and buying up big!
Hot shares in the retail sector include JB Hi-Fi and David Jones, both of which have more than doubled over the last six months.
The launch of Myer back on to the market is another signal of how hot this sector is at the moment.
There has also been many hot stock picks in the energy sector as crude oil moves back toward US$80 per barrel.
What stocks are hot in the energy sector?
The big oil players like Woodside and Oil Search have seen moves of more than 100% since the start of the year.
However, the hot stock picks in the sector have been the smaller companies with exposure to natural gas. Eastern Star Gas and Karoon Gas have both seen massive moves since the start of the year.
We continue to expect that the sector will remain in favour and there will be plenty of hot stock tips in the sector over the next few months.
Finally, for investors looking to pick up a bargain, the property sector offer plenty of opportunity.
The best hot share tips in the sector are companies that are managing their debt levels well, with Stockland and Lend lease both pushing higher over the last few months.