With the introduction of Tier 4 in parts of the UK this Christmas, it’s clear that the fallout from the pandemic isn’t over yet. It is also possible that the stock market will fall again, despite governments around the world striving to support the economy through it.
If that happens, there are some defensive stocks-those that remain in demand despite the economic downturn-it should work better than most and continue to pay dividends.
The energy sector is in a good position to survive the decline in the stock market
The two companies I returned to the energy sector SSE And National grid.. The former is particularly well suited to benefit from the transition to renewable energy. SSE has a great deal of emphasis on wind power in the UK and Ireland.
The National Grid may also benefit from exposure to renewable energy. It in 2019 I bought Geronimo Energy USA – North American wind and solar developers. I like National Grid’s US operations and unregulated activities that can create a platform for future growth.
Supermarket: Another sector for stable earnings
Food demand is holding up in all economic conditions.As a market leader, I Tesco To maintain performance despite the continued growth of discounters in the UK. In recent years it has become a stronger business and is now under new leadership. Ken Murphy joined just a few months ago. Walgreens Boots Alliance Executive.
Tesco has become slimmer and more focused on the UK. As a result, we expect to provide steadily growing returns over the next few years. Stay a strong business..
Technology stays here
Technology is a big winner in 2020. The transition to the digital world has taken a leap forward as millions of people work from home and shop online on a regular basis. It was a process that was already happening. This is good news for stocks such as: Soft cat And FDM group..
The former is a technology reseller with an enviable record. I’ve liked this business for a while and hope it works. Indeed, this year’s performance shows why it’s a worthwhile business to support.
For the full year, back in the summer, sales for the 12 months to July 31 were up 8.6% to £ 1.08bn. Meanwhile, operating profit was £ 93.7m, up 10.9%. Earnings per share was 38.2p, an increase of 10.4%.
The FDM Group, which engages in IT training and IT support for businesses, is also a growing sweet spot in the digital world.
These are the five stocks I expect to work if the stock market falls again. In my opinion, everything is a very good business. In the future, I think we will increase stock prices and dividends to reward investors.
Andiros owns a stake in National Grid. The Motley Fool UK recommends Softcat and Tesco. The views expressed about the companies mentioned in this article are those of the author and may differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. Here at The Motley Fool, by considering different insights, Better investors than us.
5 UK stocks to buy at ISA if the stock market falls again
https://www.fool.co.uk/investing/2020/12/24/5-uk-shares-id-buy-in-my-isa-if-stock-markets-fall-again/ 5 UK stocks to buy at ISA if the stock market falls again