Over the past few months, economies across the world have experienced turmoil at an escalating rate, following the global coronavirus pandemic. Measures put in place as a result of the epidemic, such as lockdown conditions, have dumped a lot of uncertainty on investors, causing a disturbance in the financial markets.
As traders look forward to calming and stable stock markets, this is a good time for savvy investors to develop a watchlist of my stocks, they might wish to buy once the COVID-19 crisis is over. As part of my effort to build capable stock portfolios, I have assembled a watchlist of stocks that I know will weather this pandemic as well as yield high returns once things go back to normal.
This portfolio will also help with determining factor on how to sell my stocks after buying into the companies.
Top 10 of My Stocks Watchlist
- National Grid PLC
- Strix Limited
- BAE Systems
- Rightmove PLC
- GSK PLC
- Prudential Financial
Why is My Watchlist Ideal for Building of an Effective Portfolio?
Read on for an overview of my stocks top 10 portfolio watchlist, and why each stock is ideal for investment in 2020.
The Best Defensive Stocks
When the future of the economy is unpredictable and uncertain, I choose stocks with income-generating and defensive track records that do well when weighed against quality metrics. I want Unilever in my stock watchlist for this year.
The company owns profitable portfolios of leading global brands, such as Marmite and Domestos. I believe that Unilever’s fast-moving consumer goods will see the company weather the crisis. Not to forget that shares by Unilever are trading below 4,000p.
I choose Amazon as an addition to my stocks portfolio watchlist for a reason. The company’s shares have been performing better than most companies during the coronavirus crisis. While stores remain closed during this pandemic, Americans have resorted to Amazon for the online purchase of essential commodities, such as food and other supplies.
Despite the experienced volatility in the company’s share price, I believe Amazon is well-positioned to withstand the pandemic both in the short term and long term.
Although the share price for Diageo’s stocks has fallen drastically, the risk-reward proposition of the company is quite attractive in the long run. Diageo owns alcohol brands, such as Johnnie Walker and Smirnoff Vodka. Although bars and pubs have been closed down, people are still going to have their drinks from home, which is why Diageo is promising.
Are There In My Stocks with Attractive Shares in Economic Downturns?
- National Grid PLC
The National Grid PLC stocks should be attractive to investors in today’s economic times because it will be unlikely for the demand for electricity to shrink now that everyone is working from home. National Grid PLC stocks are among the best performers in the FTSE 100 ranking, and I anticipate them to be an excellent investment over the year, even with the coronavirus impact on other businesses.
- GlaxoSmithKline (GSK) PLC
There are all signs that a global recession is underway. When this is the case, GSK is a great place for stock holding. The company runs consumer goods, vaccines, and pharmaceuticals. Globally, the demand for these products is likely to remain stable during and after the corona pandemic.
- BAE Systems
A defence giant and partner to governments across the globe. Including the US and UK governments. With or without a pandemic, security services remain to be a key priority to governments and businesses. Meaning that demand for BAE Systems is unlikely to wane during the coronavirus crisis, making the company’s stocks a suitable choice for my stocks portfolio.
What are the Best Stocks with Minimal Impact from Economic Crisis?
- Strix Limited
Strix Ltd is among the few companies that have announced minimal impact from the COVID-19 crisis. The company has increased its total dividend to 10% as Strix’s operations in China gets set to normalcy. There is no doubt that this must be in my stocks portfolio watchlist.
Okta specialises in identity and access management through the provision of cloud software to businesses for user authentication across applications and websites. Due to the critical nature of the services Okta delivers, it is unlikely that companies will scale back from procuring the company’s services.
With companies looking for real-time technologies to enhance remote working, I can only predict growth in the company, which is Explaining why Okta is part of my stocks portfolio watchlist.
Best Stocks from the Property Market
- The Rightmove PLC
Uncertainty in the property market has seen Rightmove’s share price drop drastically. With this fall in share price, I believe that this is the best time to invest in this real estate giant. Rightmove has a business model that will see the company earn big profit margins once the markets stabilise.
Because the company requires a minimal capital outlay, and there it is also debt-free. When the building of new homes resumes, investors in Rightmove will enjoy their pack of benefits.
Best Stocks from the Financial Sector
For the financial sector, I will go with Prudential Financial Incorporations for my Buy and Sell Portfolio. Over 66% of the world’s middle-class population get projected to come from Asia, where Prudential’s focus has grown over time, which might be reflected in the company’s share price, making it an ideal component for my stocks portfolio watchlist.
My Stocks In Summary
When building my stocks portfolio watchlist, I go for companies with savvy management, robust balance sheets, and products with high immunity to cyclical economic factors. These companies should also feature in exchanges that are committed to the UN’s Sustainable Stock Exchanges for SSE rewards.
Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances or needs.
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