The outlook for the global economy remains pretty foggy as the Covid-19 crisis rolls on. This means it can be hard to identify which are the best UK stocks to buy in this climate.
This short-term murkiness isn’t discouraging me from continuing to invest in my Stocks and Shares ISA, however. Firstly, there are plenty of great companies out there that I think should perform strongly whatever the broader economy does. Secondly, as a long-term investor I buy stocks I think will make me big returns over a decade or more, not just what I can expect them to make in the next couple of years.
Here are what I consider to be two of the best UK shares to buy today. I think they’ll thrive whatever happens to the world economy.
#1: Boxing clever
Tritax Eurobox (LSE: EBOX) is one British company whose services are in high demand right now. It lets out big-box properties across Europe that help retailers, product manufacturers and delivery firms to reach their customers. The rapid spread of coronavirus on the continent means that trading should remain buoyant as the return of strict lockdowns will keep broader e-commerce volumes moving higher.
I’m backing this UK share to deliver great shareholder returns over the long term as well, as I think that online shopping will keep growing at a brisk pace even when the pandemic is over. Be warned, though, that the possibility of last year’s Brexit deal falling apart could cause Tritax serious problems. These could range from financing issues, higher tax liabilities, and trading problems among its tenants.
#2: One of the best mining stocks to buy?
I think shares like Sylvania Platinum (LSE: SLP) are also some of the best stocks to buy in these uncertain times. This is because platinum group metals (or PGMs) are dual role metals. It means that their prices can rise during periods of economic turmoil like silver and gold. Or their values can also increase as conditions improve and industrial demand for them increases.
A recent survey by the Global Palladium Fund certainly painted a positive picture for PGM prices. Two-thirds of the investors it quizzed reckon industrial activity will improve year-on-year in 2021. And so a similar percentage (69%) of respondents said that platinum and palladium prices would rise accordingly. Just under a quarter predicted that “prices will increase dramatically”.
The outlook for metal prices might be sunny, and particularly with tightening environmental legislation supercharging demand (PGMs are critical components in cars’ catalytic converters where they are used to clean up emissions). But remember that mining shares can be risky as production problems can be common and have a significant impact on profits. That said, I still think Sylvania Platinum — like Tritax Eurobox — is one of the best UK shares to buy for these uncertain times.
