Inflation is rocketing in the UK. Official data only show that prices have risen at their fastest pace since 2012. The situation is likely to worsen as supply chain problems intensify at home and abroad.
There are several strategies in which UK stock investors like me can protect their assets. I think the following companies may be the best stocks to buy to increase inflationary pressures.
Protection with UK property shares
I think investing in UK property shares is a good option because inflation rises. In such an environment not only do real estate companies show an improvement in the quality of their brick-and-mortar assets, they can also expect to increase the amount of money they raise on rent.
Tritax Big Box REIT, Which provides warehousing and distribution space for retailers, manufacturers and couriers, is a UK share that I already own. I bought it because I think it’s a great way to buy for the e-commerce boom. And it will also benefit from the current rate of inflation.
I will also invest in retail park operators Edison Property Investment Company Such clicks and collections stop buying, as well as residential property experts Granger. The latter benefits from rising rental costs as the UK’s rental property deficit widens.
These companies, like any other UK stock, are not without risk. Tritax and Ediston may suffer if consumers begin to feel the pinch and discreet costs are reduced. Their acquisition-led growth strategies put them at risk of asset selection that fails to deliver. Meanwhile, Gringer’s profits could suffer if the price of home-made raw materials continues to rise.
3 FTSE 100 stocks I already own
While maintaining balance, I still think these UK stocks are a great buy in this über-inflationary environment. And I want to say the same about some manufacturers of the most popular consumer product brands in the world. Stocks owned by me fall into this category Unilever, Diageo And Coca-Cola HBC.
These FTSE 100 Stocks are a great hedge of inflation, as buyers will expand their purchasing budgets to buy their products. Fast-moving consumer goods (FMCG) companies can also bear the rising cost of raw materials for their customers without worrying about a significant drop in volume.
Its huge brand strength Coke That means Coca-Cola HBC should increase profits regardless of its economic status. The same can be said for Diageo, whose extensive portfolio of drinks includes market leaders such as Guinness Firm, Captain Morgan Rom and Smirnoff Vodka people will also be happy to pay a little extra for Unilever Magnum Ice cream and Dove Soap too.
However, I am a little concerned that the brand has begun to lose its brilliance with the next generation of energy buyers. The influence of famous labels has been losing steam for the past decade. And Unilever et al Consumers may be forced to spend growing-huge amounts on marketing to keep them interested.
Nevertheless, I am confident that the desire for their products remains strong enough, as an investor, to help me create a decent return for at least a few years.
Inflation is coming: 3 stocks to try and a hedge against rising prices
Don’t get me wrong … inflation is coming.
Some people are running in fear, but there is one thing we believe we should avoid doing at any cost if there is inflation … and doing it Nothing
Money that just sits in the bank can often lose value every year. But for the wise savers and investors, Where It is a million dollar question to consider keeping their money.
That’s why we’ve created a brand new special report that unveils our top 3 UK and US stock sharing ideas to try to hedge the best against inflation.
… because no matter what the economy does, an intelligent investor will want their money to work For To them, inflation or not!
After all, we’re giving this report away for free today!
Royston Wild owns shares in Coca-Cola HBC, Diageo, Tritax Big Box REIT, and Unilever. Motley Fool UK recommends Diageo, Tritax Big Box REIT, and Unilever. The opinions expressed in the companies mentioned in this article may differ from those of the authors and therefore the official recommendations we make on our subscription services such as Share Advisors, Hidden Winners and Pro. Here at The Motley Flower we believe that considering a variety of insights makes us a better investor.