Last week, investors lost interest in some of the bigger retail and tech names on the ASX that have been the market darlings since March.
While a pullback may have been justified, some have pointed out the market might be pricing in a recovery that may actually take significantly longer than anticipated.
As I’ve said before many times, I have no doubt that the big names like Webjet Limited (ASX: WEB) and Flight Centre Travel Group Ltd (ASX: FLT) will make strong recoveries in the long-run. I simply find it a little bit hard to invest when there’s such a big unknown factor regarding just how long it will take for this recovery to happen.
I would bet that Flight Centre and Webjet would both be a pretty solid bottom draw investment. Leave them there and just forget about them altogether.
However, if you take a more active approach to your investing, I think there are some other ASX shares that could offer more upside in a shorter period of time.
One ASX share that I’m really liking at the moment is Infratil Ltd (ASX: IFT), an infrastructure investment company based in New Zealand. It primarily invests in renewable energy, airports, data & connectivity and social infrastructure businesses in growth areas.
One of the reasons I like this company so much is that it’s being propelled by changes in fundamental trends such as energy decarbonisation, the transportation and storage of data, an ageing population and an expanding middle class.
If you’d like to learn more, read my in-depth article on Infratil which explains why I think it could be a further wealth winner.
Ava Risk Group
AVA Risk Group Ltd (ASX: AVA) is another share that has the potential to be driven by changes in fundamental trends. AVA has a broad range of security devices that can be used to protect things like data networks and perimeters.
The application of this technology is extremely interesting, and I would recommend that you read my in-depth article on AVA which goes into it in more detail.
I think that as long as we have businesses and governments that store critical assets and infrastructure, there will be a need to monitor, maintain and protect these high-value assets. This secular tailwind is helpful, but what’s even better is that AVA is the first to use this level of technology in this application, so there’s definitely a first-mover advantage in my eyes.