2 contrarian predictions (and the stocks to play them)

The first half of 2022 has been marked by a surge in safe-haven buying (namely, bonds and the US Dollar Index) at the expense of growth stocks. If you need any proof of how far that part of the market has fallen, just consider that EML Payments (ASX: EML) is down more than 50% this year, while Zip (ASX: ZIP) is down more than 77%... So far.

It doesn't help that the Reserve Bank of Australia raised the cash rate for the first time in 10 years earlier this month - and has flagged more hikes will be needed if it wants to bring inflation back into its target band. The Federal Reserve is also facing the same quandary - and all in all, that's making investors nervous. 

So is now the time to dip your toe in and buy quality stocks at bargain prices? Or could there be more pain at the trading desk if you decide instead to follow the crowd to cyclicals? 

We examine those themes and more in this thematic episode of Buy Hold Sell. Livewire's Ally Selby was joined by TMS Capital's Ben Clark and Tribeca Investment Partners' Jun Bei Liu to discuss two contrarian calls for the remainder of 2022 and the stocks they are buying to play them. 

Note: This episode of Buy Hold Sell was shot on Wednesday 11th May 2022. You can read an edited transcript below: 

https://www.livewiremarkets.com/wires/2-contrarian-predictions-and-the-stocks-to-play-them/