The latest stock market run-up is instructive. The FTSE 100 at a five-month high, underlining once again that the market can turn around anytime. That market crashes don’t last. And more often than not, there’s no need to panic when they do.
If anything, they are a time to buy quality stocks. That doesn’t mean you have missed the investing bus, far from it. I reckon there are still solid stocks out there that can give great returns over the long term, exactly the way we at the Motley Fool like investments to be, making them the best investments for 2020.
As I see it, there are three stock market drivers right now. One, the Biden bounce. Two, Pfizer‘s announcement that its Covid-19 vaccine was successful in 90% trials. Three, numbers on the UK economy have been somewhat supportive, adding to the global recovery narrative. With GDP growth at 15.5%, the headline numbers supported the overall recovery, even though they probably didn’t add to it.
Best investment for 2020
News can come in tomorrow that will shake up the whole story, but so far it looks pretty stable to me. Based on this, I think there are at least five FTSE 100 stocks on my list of best investments for the rest of 2020. The first is the Irish construction biggie CRH, which I said I will buy if Biden wins, given the policy focus on infrastructure spending. Moreover, a growth recovery narrative also supports construction spending. It’s on my investing list now.
A long-term buy
The Democrats’ push towards clean energy is another investing opportunity, I believe. FTSE 100 speciality chemicals’ supplier Johnson Matthey is set to benefit from this. This is because it’s producing a component used in electric vehicle batteries. In any case, as a long-term investor, I’m looking at the big changes on the horizon. These include more online commerce, cleaner consumption habits leading to more veganism, less tobacco and alcohol intake, as well as cleaner energy and climate change solutions. JMAT would be one example of the last kind of stocks.
Return of the fallen
With a Covid-19 fix looking like it’s really just around the corner, lockdown victims have been rallying now. I think if we had bought them at their lows, they would already look like the best investments for 2020. But I think there’s a lot of steam to them even now, though there’s risk too. I think it’s time to look again at stocks like the hospitality biggie Whitbread and, if I’m feeling truly bullish, aviation stocks like International Consolidated Airlines.
I like FTSE 100 real estate stocks like Taylor Wimpey, based purely on the growth recovery story. Its share price has rallied on its positive trading update released a few days ago along with the bettering investor mood. I reckon it can rise more, especially with its positive outlook. I think in hindsight it could look like one of the best investments for 2020.
Manika Premsingh 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.