Rishi will deliver his Spring Statement to the House of Commons on Wednesday 23 March. We can expect him to announce policies geared towards helping families meet the rising cost of living and probably commit towards higher defence spending. However, it’s important to keep in mind that inflation won’t go away overnight, even with the introduction of new measures.
So, which stocks are likely to rise or remain resilient as a result of the Spring Statement? Let’s take a look at four stocks in strong positions.
1. Diageo plc
Diageo, one of the largest producers of spirits and beers, has endured the test of time even when inflation soars. This is partly due to two reasons:
- The company owns labels at different price points, meaning customers can enjoy alternative products based on affordability and preference.
- The company doesn’t really have a serious rival, primarily because of high barriers to entry into the industry.
Diageo, a member of the FTSE 100, has a primary listing on the London Stock Exchange (LSE) and is traded as DGE. It also has a secondary listing on the New York Stock Exchange (NYSE) and is traded as DEO.
2. Tesco plc
Tesco, a British multinational grocery and general merchandise retailer, has over 3,400 stores nationwide. It has been ranked the ninth largest retailer in the world based on revenues.
According to experts, supermarkets can pass on rising costs to customers, meaning they can thrive during periods of inflation. Of course, customers won’t go without essentials, meaning supermarkets will still make profits.
Tesco plc is also a member of the FTSE 100, and is listed on the London Stock Exchange (LSE) and traded as TSCO.
With the ban on the production of cars with internal combustion engines in the UK expected in 2030, demand for the materials needed to produce electric vehicles will grow. One of these materials is copper, so it might be worth looking at Antofagasta, one of the major international copper producers. The company is listed on the London Stock Exchange (LSE) and traded as ANTO. It is also a member of the FTSE 100.
Mining stocks rise with inflation. This means Antofagasta could be a good investment, especially now that inflation is soaring.
4. BAE Systems
The crisis in Ukraine has prompted governments worldwide to assess their military budgets, especially since the pandemic aggravated government budget deficits. This means that defence contractors may receive funding in the Spring Statement 2022.
BAE Systems manufactures military ships, aircraft, submarines and radar systems. And being in the defence industry, the company is protected from inflation, meaning it can pass costs on to customers, making it resilient.
BAE Systems is a member of the FTSE 100. It is listed on the London Stock Exchange (LSE) and traded as BA.
How can you invest in these stocks?
To invest in these companies, you’ll need to open a share dealing account with a reputable broker. Another option is to invest through a stocks and shares ISA. This type of account helps you shield your investment gains from tax.
However, don’t forget that investing is inherently risky. Do your due diligence before making major decisions, and seek professional advice if unsure.
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