The best and worst performing shares of the week

The Australian Prudential Regulation Authority recently revealed that around $10 billion of retirement savings are locked in underperforming superannuation products, with fees for the largest industry super funds rising nearly 20% over the past three years.

So, with more money going out than coming in, given the cost of living crisis, is it time for investors to consider switching to a self-managed super fund (SMSF), and is it a suitable option?

While an SMSF offers greater control over your investments and the opportunity to enhance returns, it's not for inexperienced investors without the right knowledge.

One of the most important criteria for your SMSF's success is demonstrating that you can invest profitably before moving away from traditional superannuation.

It's also critical that you understand how to select the right type of stocks, which are solid companies with a long trading history. It's not about high-risk, high-reward speculative stocks, but about taking safe risks and being active in managing your portfolio.

If you feel ready to make the switch, or if you are already managing your own SMSF, here are three mid-cap stocks that could be excellent additions to your superannuation portfolio.

Washington H. Soul Pattinson (SOL)

This diversified investment company has interests across various sectors, including telecommunications, financial services, building materials, and resources.

Since 1998, its share price has consistently trended upward despite the occasional downturn. Historically, SOL has shown a pattern of reaching new all-time highs every four to six years.

It's currently been three years since the last all-time high, making SOL a very promising proposition at current price levels.

AGL Energy (AGL)

As Australia's largest energy provider, AGL has a trading history dating back to the mid-1980s, demonstrating its resilience and long-term viability.

The share price has recently surged over 90% from a long-term support level of $5. If this upward momentum continues, the potential return to its all-time high of $28 presents a compelling growth opportunity, making it a strong candidate for a super fund.

Cleanaway Waste Management (CWY)

With a growing population and increasing consumerism, the demand for waste management services is rising.

Cleanaway has stabilised and shown a positive trend since 2015, after a volatile start following its ASX listing in 2005.

The share price has recently broken out of a two-year consolidation period, indicating the potential to return to its long-term uptrend, making it a perfect stock for a superannuation strategy looking to outperform.

What are the best and worst-performing sectors this week?

The best-performing sectors include Financials, up over 3%, followed by Real Estate and Consumer Staples, up over 2.5%.

The worst-performing sectors include Energy, down just under 2%, followed by Materials, down over 1%, and Information Technology, down over half a per cent.

The best-performing stocks in the ASX top 100 include Orora Limited and Treasury Wines, up over 6%, followed by The Lottery Corporation, up just under 6%.

The worst-performing stocks include Liontown Resources and IDP Education, down over 9%, followed by XERO Limited, down over 5%.

What's next for the Australian stock market?

With the market up over 1% this week, it's clear that buyers are determined to keep the previously mentioned 7900 level support intact.

In last week's report, I mentioned that it would be interesting to see if this level would hold and the buyers did not disappoint, as they stepped in to drive the market higher.

Last week, I also mentioned that I was not completely ruling out the idea of a mid-year low in June. However, this week's movement pretty much closes that door.

While there is still time for this to occur, further rises next week will all but rule out this scenario.

Given probability is now more on the side of the market rising, let's consider what to expect if April's low is indeed our mid-year low.

If this is correct, the market should rise during the third quarter, particularly in July, which is historically one of the strongest months for the All Ordinaries Index. My target for this rise is between 8200 and 8400 points.

So, with a strong market move anticipated, where should you invest to maximise your returns?

Looking at the sectors, the tech and financial sectors have led the way in the past year, as both are up over 20%.

If this trend continues, as I expect in a rising market, investing in stocks within these two sectors could significantly enhance your portfolio performance.

Notable stocks in these sectors that have recently made significant moves include Westpac Banking Corporation (WBC) and Data 3 Limited (DTL), so make sure to check them out.

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