The outlook for the global economy remains pretty murky as we head into 2021 proper. A worsening Covid-19 crisis and returning lockdowns across the world are sparking fears over the economic rebound. Brexit, and fresh rounds of trade wars in recent months, could also stymie the recovery. The profits picture for many UK shares remains less than reassuring, then.
All of this hasn’t stopped me from continuing to buy stocks in my ISA, though. Sure, the economic recovery might prove lumpy in the short term. But there are still stacks of top UK shares that should thrive in 2021 and beyond. Here are several I’d buy for this year and hold until the end of the decade:
A bright outlook for the housing market makes brickbuilder Forterra a brilliant buy for the 2020s. Britain might be facing colossal economic uncertainty due to Covid-19 and Brexit. But thanks to low interest rates and the government’s Help to Buy purchase support schemes, sales of new build homes are flying. Housebuilding in the UK hit three-decade peaks just before the pandemic hit construction sites. And build rates — and therefore demand for Forterra’s bricks — should keep going from strength to strength.
#2: Clipper Logistics
Soaring e-retailing activity should underpin terrific profits growth at Clipper Logistics in this new logistics. I own this particular UK share in my Stocks and Shares ISA, and fresh trading details released this week have rewarded my faith. Clipper — which supplies warehousing and delivery services for e-commerce — said that it enjoyed “unprecedented levels of activity” over the Black Friday and Christmas periods. Logistics revenues rocketed 50% year on year for the periods spanning November and December, it said.
#3: GB Group
I believe GB Group is another great way to play the internet shopping theme. This UK share provides address and individual verification services that make sure e-retailers get their product to the right place. Its outlook is boosted by the growing threat of online fraud as well. As the boffins at Edison note: “the acceleration in digital transformation during the pandemic highlights the long-term structural growth opportunity for GB Group”. The broker suggests that “the company is ready to resume investment in priority areas” thanks to its strong balance sheet and profits resilience, too, and that it “has an active acquisition pipeline”.
#4: Standard Chartered
Getting exposure to the rocketing Chinese economy is also a splendid idea for UK share investors. According to the World Economic Forum the Asian powerhouse’s economy will rise by 5.7% annual between now and 2025. Compare that to the 2% yearly increase that the US economy is tipped to expand by over the same period. I think investing in Standard Chartered is a great cyclical share to ride this opportunity. The FTSE 100 bank sources more than 40% of operating income from Greater China and North Asia, making it the company’s single-largest market. And the steady opening up of the country’s capital markets will provide ample profits opportunities in the years ahead.
Royston Wild owns shares of Clipper Logistics. The Motley Fool UK has recommended Clipper Logistics and Standard Chartered. 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.