I’m using recent headwinds and market turbulence as an opportunity to bolster my holdings with quality UK shares!
When it seems like things are going awry, it’s easy to batten down the hatches and wait for the storm to pass before venturing out once more.
Personally, I reckon there’s a prime opportunity to buy excellent stocks, hurt by volatility, at cheaper prices, that I think could soar in the longer-term. After all, I’m a long-term investor so I’m not looking at returns or activity right now, but more at how I can boost my wealth in the coming years.
Let’s break down some sectors and stocks that I’ve got my eye on for when I have the capital available to snap them up. It’s worth noting below is a snapshot and I’d carry out a full assessment of bull and bear aspects of each stock before buying.
House builders
Some stocks on my radar in this space are Barratt Developments, Taylor Wimpey, and Redrow. I reckon once volatility subsides, they could soar.
The shortage of homes compared to the rising demand makes some of these stocks very attractive in my opinion. This shortfall should keep these firms busy in the coming years and help boost performance, as well as investor returns.
Turbulence such as rising costs and higher interest rates making it harder to obtain mortgages have hurt completion levels. This has hampered the stocks but this has made them attractively priced right now, with lower price-to-earnings ratios.
Plus, housebuilders have been an excellent source of dividends in the years gone by. It looks to me that on the surface of things that firms have prepared for volatility. They seem to have solid balance sheets to navigate current difficult conditions.
Banks and financial services
Some shares on my radar in this arena are Lloyds, Barclays, Phoenix Group, and Legal & General.
Financial services firms have also been hit by economic issues. However, they’ve also benefited. Higher interest rates have boosted revenues but these same increased rates have boosted the chances of defaults.
Now the stocks mentioned look like good value for money on paper. In addition to this, they all provide investor returns with enticing dividend yields.
Although some of these stocks – Phoenix and Legal & General – provide non-essential services, such as retirement and investment products, it’s worth mentioning the ageing and growing population will help boost performance in the longer term. The high street banks possess excellent market shares. Plus they hold a vital position in the UK banking ecosystem, which should help them climb during greener pastures.
Honourable mentions
Finally, a couple of stocks on my radar are Rolls-Royce and B&M. Rolls-Royce struggled badly during the pandemic. However, an overhaul of the business and positive sentiment in the aerospace industry has helped. The shares soared, and performance has been more robust. This upward trajectory could continue.
Discount retailers like B&M have grown impressively in recent years. The cost-of-living crisis recently has shone a spotlight on the popularity of such stores and it looks like B&M has definitely capitalised based on performance and share price.
