We told ChatGTP about how the market has crashed and risen because of Trump’s crazy tariffs and asked the AI what would be good stocks to buy right now – and also why they might be protected from market volatility. The results may surprise you!
In light of recent market volatility due to tariff implementations, focusing on FTSE 100 companies with a strong domestic presence can offer relative insulation. Here are three such companies:
1. Tesco plc (TSCO):
As the UK’s largest supermarket chain, Tesco’s operations are predominantly domestic. The majority of its supply chain is UK-based, reducing exposure to international trade tensions. This local focus helps shield Tesco from the direct impacts of tariffs affecting imported goods.
2. Next plc (NXT):
Next is a British multinational clothing, footwear, and home products retailer with a significant portion of its sales generated within the UK. While it does source products internationally, its strong domestic market presence and established supply chain strategies help mitigate tariff-related risks.
3. Kingfisher plc (KGF):
Kingfisher owns home improvement brands such as B&Q and Screwfix, operating primarily in the UK and Europe. Its substantial UK operations and customer base mean that a large portion of its revenue is less exposed to international tariffs.
4. Severn Trent plc (SVT):
Severn Trent is a UK-based water utility company providing water and wastewater services primarily in the Midlands and Wales. Its operations are entirely domestic, focusing on essential services within the UK. This domestic orientation and the essential nature of its services make it less vulnerable to international trade tensions and tariffs.
5. Associated British Foods plc (ABF):
Associated British Foods is a diversified group operating in food production and retail, including brands like Twinings and Primark. While it has international operations, a significant portion of its revenue is derived from the UK market. Its diversified portfolio and substantial domestic presence help mitigate exposure to international trade tensions.
Investing in companies with a strong domestic focus can provide a buffer against the uncertainties introduced by international tariffs.
This all does make sense, but remember, it’s virtually impossible to time the market in the short term unless you are a professional trader. So if you are buying stocks at the moment, take a long-term view and consider making regular investments rather than going all in at once.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
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