This year could be another where you feel trapped between a rock and a hard place, in regards to financial decisions at least.

Key points: Share markets are tipped to lift sharply this year but there will be a lot of volatility, experts have warned

Share markets are tipped to lift sharply this year but there will be a lot of volatility, experts have warned Mining, energy and healthcare sectors are expected to perform well if US-China trade tensions ease

Mining, energy and healthcare sectors are expected to perform well if US-China trade tensions ease Successive rate cuts have driven share prices to record highs, and many companies may be "overvalued"

Putting all your money in a "safe" place like the bank may leave you poorer, in real terms.

That's because the cost of living is rising more quickly than what you're earning from your savings account (in most cases, not much better than zero).

Left with little choice in this record-low interest rate environment, many have turned to the share market in the hope of making a half-decent return.

With borrowing costs low, many have also taken advantage of the cheap money to invest in companies, driving up share prices to "overstretched" valuations.

The ASX 200 jumped by about 20 per cent last year, while Wall Street's benchmark index, the S&P 500, surged by 29 per cent.

Both were surprisingly strong results considering bouts of panic selling, massive rebounds, then panic selling again.

Some of this can be pinned on US President Donald Trump and his unpredictable, market-sensitive Twitter outbursts throughout 2019.

An all-time high

ABC News interviewed five market professionals for their thoughts on where the share market is headed this year.

They all expect 2020 to be another volatile year.

They point to factors including Mr Trump seeking re-election in what will no doubt be a bitterly contested race, the potential for the US-China trade war to flare up again, worries about the risk of a global recession, and the continuing uncertainty around Brexit.

Nevertheless, the consensus is that global markets will continue to rise sharply.

"When you're in an environment where liquidity is likely to be increased, that cash has to go somewhere," said IG Markets analyst Kyle Rodda.

"Money is cheap, quality [of stocks] is reasonably good, so people are forced to chase returns in riskier assets, trying to find any return they can.

"It's a self-perpetuating cycle, money chasing momentum."

But he expects "the returns probably won't be as much compared to 2019, as there will be challenges for our markets due to further [Reserve Bank] interest rate cuts".

'Risk on' for mining and energy

So what are some of the stocks or sectors that might perform well this year?

"The signing of a phase one US-China trade deal means we're in a 'risk on' mood, and if China's economy continues to do well, it will benefit our resources stocks," said Shaw & Partners senior investment adviser Craig Sidney.

Given that US-China tensions have subsided for the time being, the experts interviewed were feeling upbeat about mining giants BHP, Rio Tinto and Fortescue Metals.

"China will continue to stimulate its economy [and] Chinese steel production will still be a feature," said Fiona Clark, a portfolio manager at Merricks Capital.

The experts were also, generally, optimistic about the oil and gas (or energy) sector.

"Energy should be reasonable, especially since oil prices are holding up OK at the moment," Mr Sidney said.

The price of Brent crude is around $US66 per barrel, its highest value in three months.

"Stocks like Woodside Petroleum, Santos, Origin … but Santos is probably our number one pick in that space," he said.

However, Ms Clark was "not keen" on energy stocks, warning that investors will be at the mercy of a small group of nations (the US, Russia, and Organisation of Petroleum Exporting Countries nations such as Saudi Arabia) that can arbitrarily influence oil prices.

"While we're seeing OPEC and its partners do everything they can to keep oil prices supported, I'm just concerned they can turn the tap on again at any time, and the US can increase production at any time."

"Any improvement we've seen in the pricing is almost artificially created and the underlying supply-demand fundamentals don't support a strong oil price," she said.

Hopeful about health

Healthcare was another sector with bright prospects, according to the panel of market experts.

Over the past 10 years, the value of Australian healthcare stocks skyrocketed by 500 per cent, far outperforming the ASX 200 index (leaping by 150 per cent during that period).

"In our experience, healthcare companies are high quality, consistently delivering growth and returns," said Tribeca Investment Partners' lead portfolio manager Jun Bei Liu.

"They have a sustainable competitive advantage, and continue to reinvest in their business to ensure that competitive advantage," she added.

Ms Clark was also enthusiastic about healthcare stocks, naming CSL, Resmed and Cochlear in particular, but said they had "valuation issues" (too expensive, in other words).

However, it certainly has potential if one takes a very long-term perspective.

She added: "The consumerisation in China, and the focus of the Chinese Government to improve healthcare outcomes, will be a theme for the next 20 to 30 years."

"It's not just a 'one or two year' thing, so I'm still quite keen there."

Real estate recovers, but construction lags

Australian house values are experiencing a rapid bounce-back, stimulated by a record low cash rate (currently 0.75 per cent), which the RBA is likely to cut again in the next few months.

At this rate, Sydney and Melbourne prices are expected to climb back to record highs, reigniting fears of a property bubble.

"We see them [REA Group and Domain] improving in 12 months' time, and expect positive outlook statements from them in the February reporting season," Ms Liu said.

"But it's still too early for builders as we believe earnings will be tough for them in 2020, and possibly into early next year," she added.

Ms Clark echoed similar sentiments, anticipating that Domain, REA, McGrath and mortgage broker stocks could see a rebound in their share prices.

"Even though we're seeing a bottoming in house prices, the lag in the construction is quite a long-term thing, 12 to 18 months," she said.

"We need to see an undersupply [of apartments] before we see an improvement in construction."

To bank or not to bank

Banking was the most divisive sector.

Everyone had a different opinion about the prospects of Commonwealth Bank, Westpac, ANZ and NAB.

"I would be 'underweight' in the major banks for the time being," Ms Clark warned.

Meanwhile, InvestSMART analyst Guarav Sochi said: "The banks aren't expensive, but I question whether those yields are sustainable", noting that their margins will suffer with further rate cuts by the RBA.

As for Mr Sidney, he thought the big four banks were "reasonable value" as their share prices had fallen sharply since the banking royal commission (before rebounding somewhat) — and in Westpac's case, since its money-laundering scandal erupted.

"Bank share prices should be well supported, but they're not going to be a fantastic proposition," Mr Rodda said.

"You'll be buying their stocks on the risk there will be dividend cuts at some point in the future."

Meanwhile, Ms Liu considered bank shares to be "very cheap" since they offer "pretty good yield", despite some banks facing "more issues than others".

Temperamental tech

Opinions were also divided on Australian technology companies — WiseTech Global, Appen, Afterpay, Altium and Xero.

"Tech companies are expensive simply because they offer a rare growth opportunity that most of us don't see across any other market segment," Ms Liu said.

"They performed well last year, but we think this year will be the year for materials, energy and cyclical sectors instead."

Mr Rodda thinks the tech sector will continue to rise simply because the market is flooded with "cheap cash" from aggressive RBA rate cuts.

"I think this momentum trade will continue in the tech space for a while … only effectively because of cheap money and reasonable enough conditions to justify taking risk."

Most bearish of the lot was Mr Sidney, who said: "I don't expect them to do too well."

"I suspect there will be weakness across that space purely based on valuations … I'd be surprised if they can continue to live up to those high expectations."

"If those numbers aren't up to expectations, they'll be sold off quite heavily."

Beware of property trusts, utilities and consumer stocks

Utilities and real estate investment trusts (REIT) are the stocks that investors should avoid, according to most of the panel.

"Some of those stocks look overvalued at the moment … stocks like GPT and Mirvac for example, they look quite expensive," Mr Sidney said.

He added that Woolworths and Coles, giants in the consumer staples sector, "should have reasonable growth, but you certainly can't justify their current valuations."

Mr Rodda agreed that REITs and utilities will see "less buying activity".

"Transurban is extremely expensive, and the REIT sector has been bit up a long way," Mr Sodhi said.

"Historically, they've provided good yield, but are a bit of a risk at the moment."

Meanwhile, Ms Liu said: "It looks like property trusts and some utilities names will be sold in favour of other sectors, simply because they've done well in the past few years."

"Many of them are lacking growth at this point, so if investors allocated money to cheaper cyclical stocks instead, their returns will be much larger."

She expects to see a pickup for "consumer-facing stocks in the latter part of the year, potentially if there are more tax cuts that come through in the May [Federal] budget."

But so far, the Reserve Bank and the Morrison Government have failed to fire up the economy by lifting consumer spending — despite tax rebates and three interest rate cuts.

A risky bet on cars

And finally, if you're prepared to take on major risks, Mr Sodhi suggested buying shares in ARB, AMA Group, Bapcor, AP Eagers and the automotive industry.

He believes there could be some recovery at some point given car sales have been falling for the past 20 months.

"For patient long-term capital, there's an opportunity to pick up cyclically distressed businesses as the whole sector is going through a rough time," he said.

"I would caution, though, we've just been dripping money in those areas … because things can get a lot worse before they get better.

"A lot will depend on what happens to house prices from here [as] a lot of consumer spending, specifically, car sales, have been correlated with property prices.

"We've been avoiding, for the last several years, stocks exposed to discretionary spending … but now those falls have largely happened, you might start looking at them again."

But before you act on any of these predictions here, please remember share trading is a risky endeavour — so buyer beware.

DISCLAIMER: This article does not contain financial advice. We strongly recommend that you obtain professional advice before making any investment decisions.