2 FTSE 100 investments for a Stocks and Shares ISA

Rupert Hargreaves would buy these two FTSE 100 shares in his Stocks and Shares ISA as the UK economy continues to open up.

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The FTSE 100 has recently reached a post-pandemic high. However, despite this performance, I think it can head even higher. This is because many businesses in the lead index continue to look cheap compared to their potential. 

With that in mind, here are two index champions I’d buy for my Stocks and Shares ISA today to capitalise on this trend. 

FTSE 100 investments

The first company I’d buy for my FTSE 100 ISA portfolio is Anglo American (LSE: AAL). 

I believe this mining conglomerate is perfectly positioned to ride the global economic recovery over the next few years. According to the company’s latest trading update, production from its copper and iron ore mines increased 9% and 1% respectively for the third quarter of its financial year. 

This is notable because the prices of both of these commodities have recently reached multi-year highs. Higher production and higher prices suggest Anglo could be on track to report a bumper trading performance this year. 

Of course, the most considerable risk of investing in any commodity business is that prices can fall as fast as they rise. So, while the company might be profiting from rising prices today, that might not last. As such, there’s no guarantee Anglo will report bumper profits this year. 

Still, I think this FTSE 100 blue-chip could be one of the best ways to invest in the global economic recovery, due to its exposure to crucial resources. 

FTSE 100 (London Stock Exchange Share Index) on Gold Coin Stacks Isolated on White

Stocks and Shares ISA buy 

The second FTSE 100 stock I’d buy for my ISA right now is Informa (LSE: INF). 

This company’s been hit hard by the pandemic. The business, which runs events including the China Beauty Expo and the Monaco Yacht Show, had to pull out all the stops last year when most large events were cancelled. 

The largest exhibition group in the world has tried to shift events online, but this hasn’t stopped the bleeding. The FTSE 100 company swung to a £1.1bn pre-tax loss in 2020, compared to a profit of £318m the previous year.

Most might shy away from investing in such a business at this time, but I’m optimistic. Management thinks the company will report sales of £1.7bn this year. Based on that projection, City analysts believe the group will earn a net income of £309m. 

This is the baseline projection, and if the world’s post-coronavirus recovery accelerates, Informa could surpass this figure. I think it will. That’s why I’d buy the FTSE 100 stock today for my Stocks and Shares ISA. 

Of course, there’s also a chance the company will have to revisit these figures if the pandemic drags on. In that case, I think earnings and sales would therefore disappoint, and the stock could fall in value. As such, Informa may not be suitable for all investors but, with a favourable tailwind, I think it could be a great FTSE 100 recovery play. 

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

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