Brexit panic is good news for bargain hunters

Professional investor William Meadon picks three of his favourite UK stocks.

A professional investor tells us where he'd put his money. This week: William Meadon of the JP Morgan Claverhouse Investment Trust picks three favourites.

There is a great deal of uncertainty surrounding the British economy and stockmarket. But despite all the doom and gloom, the economy is in better shape than many realise. Indeed, in stark contrast to the horror stories and negative headlines, what we're seeing on the ground, at the company level, are a number of bright spots. It's easy to miss these opportunities if you don't tune out the Brexit-related noise.

JPMorgan Claverhouse aims to provide both capital and income growth for its shareholders by investing in a portfolio of 60 to 80 quoted British equities: reasonably valued quality companies with improving prospects. The fund has just announced its 46th consecutive annual dividend increase, the longest of any UK-only investment trust quoted on the London Stock Exchange.

The housing gloom has gone too far

What's more, the Help-to-Buy programme is making house purchases more accessible and, if the scheme finishes as planned in 2023, there should be an increasing number of people taking advantage of it in the coming years. We particularly like Barratt Developments (LSE:BDEV) thanks to its strategy of focusing on areas outside London, where there is less concentrated Brexit risk and, consequently, lower house-price volatility. Barratt's management are experienced, astute operators and although the 8% dividend yield on the shares includes some special payments, even in the absence of these the shares looks attractive.

New managers will boost Glaxo

GlaxoSmithKline (LSE:GSK)

However, a change in management should gradually improve the reputation of the company. In the meantime, investors are being paid generously to wait through the quarterly payment of a dividend currently worth more than 5% of the share price. Furthermore, the recent joint venture with Pfizer's consumer health business highlights the strategic choices available to the company and the management's ability to exploit them.

A top record in infrastructure

John Laing Group (LSE: JLG)

Recommended

Back on track: why you should invest in railways
Share tips

Back on track: why you should invest in railways

Rail transport suffered a severe blow in the pandemic. But while post-Covid-19 working patterns may reduce revenue, trends in technology, long-distanc…
22 Oct 2021
Airtel Africa has growth on speed dial. Here's how to play it
Trading

Airtel Africa has growth on speed dial. Here's how to play it

Mobile-phone group Airtel Africa is cashing in on the rise of the continent's digital economy and looks set for years of rapid expansion, says Matthew…
22 Oct 2021
Share tips of the week – 22 October
Share tips

Share tips of the week – 22 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
22 Oct 2021
A listed private equity fund going cheap
Share tips

A listed private equity fund going cheap

Some of the fastest-growing businesses are unlisted. This private equity fund can help you profit from them, says David Stevenson.
19 Oct 2021

Most Popular

Properties for sale for around £1m
Houses for sale

Properties for sale for around £1m

From a stone-built farmhouse in the Snowdonia National Park, to a Victorian terraced house close to London’s Regent’s Canal, eight of the best propert…
15 Oct 2021
How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021