Thu, 13th Dec 2018
As Theresa May addresses the House of Commons to plead for MPs to come together and work on a Brexit deal that will honor the referendum, it’s natural for investors to be concerned about the future of the UK economy.
We are just four months away from Article 50 triggering, and the UK officially leaving the European Union. If the UK leaves with no deal then it could cause chaos for the Financial and Housing sectors, as well as some retailers. UK-focused banks such as Lloyds, and retailers such as Marks and Spencer are facing unstable outlooks. It is wise for investors to start looking for shares that are more ‘brexit proof’.
The medical industry is one that is fairly likely to survive Brexit. There will be some challenges along the way. For example, the company is having to stockpile products to protect against any supply disruption that may occur if there are border delays following the March deadline. However, that is likely to be the only real issue that the company faces. Demand for medicine will always be there, regardless of the economic climate.
Internationally focused companies, including resource-focused ones, are another comparatively appealing option. These companies take their earnings in foreign currency so will not be too adversely affected if the pound were to struggle. Since they deal with buyers in foreign countries, too, any domestic woes are unlikely to impact on them too harshly. Regardless of what happens with Brexit, those companies will be able to keep on trading.