Old Mutual on which sectors should you focus on to boost your portfolio returns in Q2

As we enter the second quarter of trading, investors are eagerly anticipating what the future holds, especially after a strong performance in the first quarter. Peter Brooke, Portfolio Manager at Old Mutual Investment Group, shared insights on the market outlook and key sectors to focus on to boost portfolio returns in Q2. The first quarter saw significant growth in the market, with the JSC recording a 10% increase, outperforming global markets. Key drivers of this growth were the oil sector, platinum shares, and telcos, with several companies seeing impressive gains. The theme of value outperforming growth was prevalent in the first quarter, with small cap stocks performing well and large caps lagging behind. Looking ahead to the second quarter, Peter emphasized the importance of a diversified portfolio and discussed potential opportunities in sectors that have underperformed in the past year. While making short-term market forecasts is challenging, Peter highlighted the potential for growth in small companies and opportunities in sectors like banking. He also discussed the tourism and mining sectors, noting the potential challenges faced by the tourism industry due to slow vaccine rollout and the positive outlook for miners. Overall, Peter advised investors to stay diversified and consider opportunities in sectors that have the potential for growth in the upcoming quarter.