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The FTSE 100 continues to provide a range of interesting investment opportunities, but what shares should you be looking to invest in during the remainder of the year? It’s been a volatile period for the markets, but there are some areas well worth looking into.
Mining and Energy Stocks
Mining and energy companies have been among the stars of the FTSE in recent times, as they’ve helped to push the FTSE back up to a decent level as it looks to recover the losses from earlier in the year. Supply chain problems, rising commodity prices and growing demand levels are some of the factors to consider here.
Companies such as Miners BHP Group (BHPB) and Anglo American (AAL) suffered earlier in the year as iron ore prices dropped, but the likes of Shell (SHEL), BP (BP), and Rio Tinto (RIO) are among the stocks to lead a fightback in more recent weeks. You’ll want to take a close look at the factors affecting these industries to see whether you think the rising prices will continue, as there are fears that easing commodity prices could see them lose ground in the latter part of the year.
Rising Stocks
Perhaps the ideal type of investment is when you catch a share that’s on the rise. This is a company that breaks into the FTSE100 as it grows and becomes more sought-after.
In each case, a unique set of factors that you need to analyse to understand why they’ve risen and what the future might be in store for them has fuelled their success. According to this article on how to spot an FTSE 100 riser, some names to have performed like this in the past couple of decades include JD Sports (JD), Ashtead (AHT) and Rightmove (RMV). This index simply shows the top 100 companies on the London Stock Exchange by market capitalisation, so shares can move in and out of it as they gain or lose value.
Blue-Chip Stocks
The UK’s top blue-chip stocks have traditionally offered solid returns with less volatility than others, but they’re still viewed by some FTSE analysts as being undervalued in comparison with their global rivals on other stock exchanges. A blue-chip rally on the FTSE could see shares in the likes of banks and other major companies with a huge degree of stability start to gain value.
While there is no definitive list of all the FTSE’s blue-chip stocks for you to follow, you’ll typically find names such as HSBC Bank (HSBA), Diageo (DGE), Unilever (ULVR), and Vodafone (VOD) on any lists covering this subject. As well as generally being steadier than other shares, these well-established companies often pay out regular dividends to their shareholders.
The size and diversity of the FTSE 100 mean that there will always be opportunities for investors to find good value shares that rise in value. However, you need to carry out sufficient research to find out which companies are likely to be on the way up soon and which could head in the opposite direction.
