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As the economy tilts toward recession, portfolio analysts are turning towards sectors and companies that handle cloudy conditions better than most. Healthcare, energy, consumer staples and utilities come into focus, while cyclical sector companies lose favour.

Up until recently, alternative investments were only really open to institutional investors, but with these now available at a wholesale and retail level the retirement strategy game has changed.

Turbulent markets make it timely to review three growth businesses that boast strong free cash flow and robust balance sheets for volatile times, writes Francyne Mu, portfolio manager at Franklin Equity Group.

Demand for minerals needed for decarbonisation and the lower Australian dollar are driving increased M&A activity in Australia, and analysts say the trend is likely to pick up, with the availability of well-valued stocks adding appeal for would-be buyers.

The regulator, which is cracking down on financial product issuers for violating requirements and obligations around how they market to investors, issued its first stop order over a superannuation product, temporarily closing Spaceship Super to new investments.

The test allows investors who can certify that they earn $250,000 a year or have more than $2.5 million in net assets to access higher-risk securities normally off-limits to individuals. But many say the test is confusing and outdated, and an independent statutory body has called for an update.

While analysts see a negotiated deal as the most likely outcome, a compromise is still not guaranteed. The bigger concern, they say, stems from ballooning government debt loads across developed markets in the wake of pandemic spending.

Significant global and domestic pressures have created a particularly challenging environment for small businesses, which are facing higher costs and lower revenue as “long-tail effects” of the pandemic, the peak industry body says in new research.

As Australia’s energy transition ramps up, spurred by a greater government commitment, the ethical investment manager says investors risk getting saddled with “stranded assets” if they don’t limit their exposure to fossil fuels.

India’s booming population has many considering whether and how to get exposure to its market, despite its year-to-date underperformance. While it may not be the next China, India’s growth prospects remain attractive, driven by multiple tailwinds, and investors now have more points of access, Mason Stevens says.

For the world to meet climate targets, the supply of battery-grade lithium will have to ramp up greatly, prompting expectations that the price will keep rising for years to come. And Australian companies with proven lithium deposits could do well as M&A in the sector stays hot, analysts say.

The end of the pandemic is leading to a “new normal” for the ETF market in Australia, with thematic funds set to steal the spotlight from vanilla ETFs as investors look to take advantage of megatrends like decarbonisation, Global X’s Blair Hannon says.