Best shares to buy after Brexit

The Brexit process has created a lot of uncertainty, but it also presents opportunities. Here are the stocks and industries to keep an eye on in the post-Brexit world.

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It’s fair to say 2020 has been an eventful year for the UK stock market. As the UK negotiates and manages its exit from the European Union against the backdrop of the coronavirus pandemic, stocks have endured levels of volatility not seen since the global financial crisis.

But while some companies will probably lose out as a result of Brexit, there are others that could prosper in a post-Brexit economy. Despite officially leaving the EU on 31 January 2020, the UK is still in a transition period until 31 December 2020. Here are some stocks and industries that might perform well after the transition period ends.

Best shares to buy after Brexit

Here are the stocks you may want to consider after the UK leaves the EU:

  1. Real estate and building stocks

    The demand for UK property is unlikely to subside after Brexit, and the UK housing market has been noticeably resilient during the coronavirus pandemic.

    Best real estate and building stocks to keep an eye on after Brexit: Barratt Developments, Taylor Wimpey, Marshalls and Grafton Group.

  2. Hospitality and entertainment stocks

    With the double whammy of coronavirus and Brexit uncertainty, the British hospitality sector has struggled in 2020. However, it’s an industry that’s likely to bounce back once the pandemic passes. As it mainly relies on local customers, it should also fare better than other industries after Brexit.

    Best hospitality stocks to keep an eye on after Brexit: JD Wetherspoon, Youngs, Hollywood Bowl Group and Mitchells & Butlers.

  3. International stocks

    British companies that operate internationally may also be better insulated against any negative effects of Brexit, especially if they’re in well-established industries.

    Best international stocks to keep an eye on after Brexit: Unilever, AstraZeneca and Games Workshop.

What effect will Brexit have on the stock market?

While the UK stock market has been particularly volatile in 2020, it’s hard to know how much of this was due to Brexit and how much was due to coronavirus, which caused stock market crashes around the world.

As with any major political or economic event, Brexit is likely to affect different industries in different ways, and this is also true for particular stocks. However, investors and markets also “price in” significant upcoming events or eventualities, and so there may be little noticeable effect on the stock market even on the day the Brexit transition period ends.

This article offers general information about investing and the stock market, and it should not be construed as personal investment advice. It has been provided without consideration of your personal circumstances or objectives. It should not be interpreted as an inducement, invitation or recommendation relating to any of the products listed or referred to. The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please get financial advice. The author holds no positions in any share mentioned.

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