6 UK shares I’d buy in my ISA as stock markets fall again!

Fears over the Covid-19 crisis have put UK share prices on the back foot again. Here’s what I’d buy for my Stocks and Shares ISA today.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The rally that thrust UK share markets to multi-month highs in early November is grinding to a halt. It seems to be more than just a light bout of profit taking too. A string of worrying news suggests something more sinister could be afoot.

Positive updates over Covid-19 vaccines that helped lift share markets less than a fortnight ago are still streaming in. But a fresh spike in coronavirus cases is dampening optimism that the global economy could bounce back in 2021. The World Health Organisation now says the virus claims a life every 17 seconds.

Be prepared!

At this rate, it’s possible that economically-catastrophic lockdowns could persist well into next year. US unemployment levels are rising again as the infection rate marches higher, data on Thursday showed.

Passive income stocks: our picks

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

And European Central Bank chief Christine Lagarde told the European Parliament in recent hours that “the euro area economy is expected to be severely affected by the fallout from the rapid increase in infections and the reinstatement of containment measures.”

Coronavirus 2019-nCoV Blood Samples Medical Concept

The Covid-19 crisis has also raised the chances of a disastrous end to the Brexit process. It emerged yesterday that European Union chief negotiator Michel Barnier will be self-isolating following one of his team testing positive for the virus.

Brexit talks are now paused with a little over five weeks left until the end of the transition period. A no-deal withdrawal would harm the global economic recovery significantly, not to mention the earnings prospects of many UK shares.

6 UK shares on my radar

It’s clear then, that UK share investors need to be extremely careful before parting with their cash. News flow this week suggests the stock market rally of early November was built on sandy foundations. The profits outlooks of a great many British stocks remain less than encouraging, despite the rally. A large number of UK shares (like Cineworld and Hammerson, for example) continue to teeter on the edge of extinction too.

Still, the murky economic outlook won’t discourage me from buying UK shares. In fact, I’ve continued investing in my Stocks and Shares ISA in 2020, despite the shadow of Covid-19. And there are many options available to me even if the painful economic downturn persists.

I can buy defensive shares like utilities companies, for example. After all, our need for warm homes, working light bulbs and running water remain constant, whatever broader economic conditions are like. This makes National Grid and Pennon Group perfect picks for these uncertain times, for example.

I can invest in companies that provide buildings, contents, pet, or car insurance as well. Demand for these sorts of products remains constant during upturns and downturns. And I can choose from Admiral Group or Sabre Insurance Group, for example, to ride this theme. Or I can buy healthcare stocks for my ISA for the same reason.

Companies that operate in this field include pharmaceuticals colossus GlaxoSmithKline and medical testing specialist EKF Diagnostics. The list is endless, as are the opportunities to get very rich with UK shares.

This AI stock is attracting investors like Michael Bloomberg and Peter Thiel…

Why are these legendary investors, already wealthy beyond imagination, drawn to this opportunity? The allure lies in more than just potential returns; it's a vote of confidence in a company poised for long-term success.

Imagine a revolutionary AI company that's not just participating in the digital media landscape but reshaping it entirely.

Trusted by giants like Amazon, Disney, and Netflix, the company reported nearly £637 million in revenue last year, marking a robust 7.8% growth over three years. Its impressive market reach and spirit of innovation are just the beginning of its story.

Best of all, we’re thrilled to offer you an exclusive glimpse into this game-changing AI investment, absolutely free.

Get your free AI stock pick

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.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Admiral Group, GlaxoSmithKline, and Pennon Group. 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.

More on Investing Articles

Woman riding her old fashioned bicycle along the Beach Esplanade at Aberdeen, Scotland.
Investing Articles

This beaten-down FTSE 250 stock trades at a 10-year low and yields a stunning 12%!

Harvey Jones is staggered by the astonishing yield on offer from this FTSE 250 stock. It's a mind-boggling rate of…

Read more »

Silhouette of a bull standing on top of a landscape with the sun setting behind it
Investing Articles

3 beaten-down shares to consider buying before the next bull market

Instead of waiting for stocks to start moving higher, Stephen Wright thinks investors should look for shares that might be…

Read more »

Black father and two young daughters dancing at home
Investing Articles

UK investors piled into these S&P 500 stocks during the Liberation Day sell-off…

Our writer wasn't surprised to see AJ Bell investors buying into the S&P 500 earlier this month, though one popular…

Read more »

UK coloured flags waving above large crowd on a stadium sport match.
Investing Articles

A stunning 10% dividend-yield stock to consider for a Stocks and Shares ISA!

Harvey Jones says Stocks and Shares ISA investors should consider FTSE 250 fund manager aberdeen, a recovery stock that pays…

Read more »

UK financial background: share prices and stock graph overlaid on an image of the Union Jack
Investing Articles

Here’s why the AstraZeneca share price dipped 3.7% in the FTSE 100 today

Despite AstraZeneca’s falling share price today, this writer believes the London-listed pharmaceutical giant could be worth a closer look.

Read more »

Photo of a man going through financial problems
Investing Articles

I asked ChatGPT to name 3 growth stocks to consider buying in today’s dip. Here they are!

Harvey Jones wants to use the stock market sell-off to buy some great value growth stocks and decided to call…

Read more »

Serious thinking young woman
Investing Articles

Are Associated British Food shares now one of the FTSE 100’s greatest bargains?

Associated British Food (ABF) shares have slumped on news of tough retail conditions. Is the FTSE 100 stock now too…

Read more »

Businessman hand stacking up arrow on wooden block cubes
Growth Shares

Putting £450 in the stock market each month could be worth this much in a decade

Jon Smith explains which sectors could offer high growth potential for the coming decade and how to make the stock…

Read more »