Stock market uncertainty’s the ‘new normal’. Here’s how I’m investing in FTSE 100 shares now

first_img Let’s be clear. 2021 may not be the roller-coaster year that 2020 was, but it’s still going to be fraught with uncertainty. I expect the stock markets to be jerked around quite a bit in the year. My go-to investing strategy in this scenario is to buy FTSE 100 stocks that are relatively immune to it.Why the uncertainty?They way I see it, there are three key sources of uncertainty for FTSE 100 stocks to watch out for in 2021:5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…#1. Brexit: We’ll (hopefully) have some clarity on how Brexit will proceed by the time we enter 2021. But how smoothly the implementation takes place remains to be seen. #2. US-China trade war: With a new president soon to be in the White House, the tone of the US-China trade war is expected to change. But will the two big economic powerhouses look eye-to-eye in 2021? That too, remains to be seen. So far, the it continues, though.#3. Coronavirus crisis: Last, but clearly far from least, whether and how far we conquer the pandemic is still an unknown. The vaccine is here, but so is a new strain of the virus. What wins? We’ll know in time. But I think we should pencil in continued uncertainty on this count. FTSE 100 stocks to buy nowAs difficult as this environment sounds, the fact is that some shares are still well-placed to make gains even then. I see much growth possibility in three kinds of stocks:#1. The untouched: We’ve seen for ourselves in 2020 how some stocks were barely dented while others actually improved their performance. This is the first set that I’d consider buying from. Healthcare stocks like the FTSE 100-listed Hikma Pharmaceuticals is one example. It’s manufacturing Covid-19 medication, has healthy financials, and a low earnings ratio of 12.2 times. Its share price is also firmly on the upswing. #2. The bargains: Next, I’d look at bargain stocks. These are shares trading at low earnings ratios despite the company’s solid credentials. There are various reasons that such a company’s share price could have dropped, like the stock market crash, an uncertain economic outlook, or just as a short-term blip. While many high-quality FTSE 100 stocks fell in the category after the stock market crash, they’ve quickly gained ground in anticipation of an improved outlook for 2021. Alcohol giant Diageo is among these. Its share price showed a sharp upturn in November and is finally back to its pre-Covid-19 levels. I’ll buy it if its share price slides down again.#3. The dispersed: Finally, I’d consider companies that are geographically dispersed. In this case, even if there’s stress in one of the markets it serves, the others can cushion the blow. A good example of this is the FTSE 100 multinational consumer goods giant Unilever, which incidentally has a huge presence in Asia. Moreover, as a producer of consumer staples, it’s guaranteed a minimum level of sales irrespective of the state of the economy.  Enter Your Email Address Stock market uncertainty’s the ‘new normal’. Here’s how I’m investing in FTSE 100 shares now There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Image source: Getty Images Don’t miss our special stock presentation.It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about.They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market.That’s why they’re referring to it as the FTSE’s ‘double agent’.Because they believe it’s working both with the market… And against it.To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this ‘double agent’! Our 6 ‘Best Buys Now’ Sharescenter_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Diageo, Hikma Pharmaceuticals, and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Simply click below to discover how you can take advantage of this. See all posts by Manika Premsingh Manika Premsingh | Wednesday, 23rd December, 2020 last_img read more