What to Buy then Mr Doom and Gloom?
Previously on my last blog, (Brexit shares to avoid 2019), I was utterly negative about my stocks picking for the hard Brexit period. UK Brexit shares investments are meant to be long term and risk reduction is part any self investors job to mitigate from losses.
I believe there are still areas which can still strive and benefit the UK exit from the EU. As investors we should be looking at the long term view and small pockets of opportunities.
Ok lets not waste anymore time and get to the areas I would be investing in. Areas which I feel still have good value and falsely suppressed due to the current heated economy.
1. Oil Companies
I like the prospects of Shell, BP and Total. Companies which can drive large profits, cut cost dramatically and sell low-profit assets away. These three companies are always focused on dividend payout to keep shareholders happy. With no project on the horizon from oil companies between 2015-2017, it is clear that oil output production inventory will decline and require years before new oil discoveries and project are delivered. So when Oil hits $50 a barrel, start buying these companies, SIMPLE!
I like Rio Tinto and Glencore. They are focused on debt reduction and high-quality mining for electric vehicles. With 5G on the horizon, there should be more flow of electric vehicles on the road and incentive for carbon footprint reduction. Other factors such as growing world and requirement for precious metals is critical in the next technological cycle.
Diageo and FeverTree. When we are happy we drink. When we are depressed we drink. The price of drinks are increasing and I do not see household clamping down on drinking budget. Millennials generation are getting healthier with no smoking and drinking quality drinks in moderations. Premium drinks trends are on the rise and converts to profits for these companies.
4. Global Index Funds
Low Cost investing would be a key component to your portfolio success in the next decade. As per my previous blog (2019 is year of portfolio balancing) it is a vital year which I am reducing risk in my shares portfolio. Global diversification with shares from non-cyclical companies is important to set a base foundation.
My two favourite global funds are Lindell Train Global Equity Fund and Legal & General Global index.
I hope you enjoy my mini series on UK Brexit shares. Please feel free to email and leave comments on your queries or opinions.