The Best Stocks for Investing During Global Uncertainty

Not all types of conflict are created equal, but there’s no doubt that the world has been gripped by various crises and wars in recent times.

From the sleath-like battle with Covid and continual battle against structural racism to the all-out war that wages in Ukraine, these events have weighed heavily on those who fight them while also taking a significant toll on the financial marketplace.

The stock market is particularly vulnerable to global or geo-political conflict. But what are the best stocks for investing in during such tumultuous and uncertain times? Let’s find out!

The Rise of Commodity Stocks During Challenging Times

There are some stocks that tend to perform better during times of conflict and tumult, depending on the precise nature of the crisis and how it progresses.

If we think outside of the Russia / Ukraine crisis, one of the biggest current challenges revolves around a disproportionately high rate of inflation. This has peaked at 5.4% so far in 2022, while experts predict that it could rise as high as 7% by the spring.

This is largely the result of increased government spending during the coronavirus pandemic, which has left the base interest rate capped at 0.5% and seen the value of the pound depreciate sharply over time.

In the case of such rampant inflation (which is also prevalent across the globe), national currencies are gradually weakened in line with their purchasing power. As the pound and similar major currencies depreciate, we see global commodity prices increase, so the stocks that supply these entities also become more valuable over time.

So, while other types and categories of stock can continue to perform well in the current climate, commodity equities and similar entities may also hold significant value.

The Best Stocks to Invest in Right Now

With the above in mind, you may want to consider accessing specific indices through CFD trading or a similarly derivative product.

But what are the most attractive individual stocks right now? Much will depend on your outlook and appetite for risk, of course, but here are some ideas to keep in mind:

• #1. Procter & Gamble (NYSE:PG): We’ll start with the ultimate consumer goods company, with Procter & Gamble home to recognisable brands such as Aussie, Oral-B and Fairy. The brand has seen its share price increase steadily by 85% over the course of the last five years, highlighting its diverse appeal and ability to perform during challenging periods. What’s more, the company boasts a market cap value of $343.30 billion, so it’s one of the largest entities of its type in the world.

• #2. Airbus (EPA:AIR): Despite enduring a challenging pandemic, Airbus has managed to retain its position as the world’s largest plane manufacturer for the third year running. In 2021, it managed to rebound and grow its revenue by 4%, with adjusted profit up by 185% to a cool €4.86 billion. Currently, the shape price also remains €110, which is lower than the pre-pandemic peak of €139 and creates an opportunity to buy in at a discount.

• #3. Rolls-Royce (LON:RR): We close with Rolls-Royce, which is a luxury brand that posted profits of £124 million at the end of 2021. This was an impressive recovery for a firm that posted losses to the tune of £3.1 billion in the previous year, with car sales and air travel impacted heavily by the pandemic. This is a blue-chip stock that also holds inherent and universal value, making it ideal for dividend investment and pursuing incremental returns over time.