May 29, 2016

3 Defensive Stocks in Case of Brexit


With the EU referendum less than a month away, there’s a realistic chance that Britain could exit the EU. Whether you think this is a good or bad thing, the chances are that in the short term at least, the FTSE 100 will fall. That’s because investors tend not to like uncertainty and with Britain exiting the EU being an unprecedented event, it would be likely to cause a degree of fear in the short run.

As such, buying defensive stocks could prove to be a wise move. While many cyclical stocks may be hit hard, companies with robust and resilient business models may outperform their index peers as investors seek a perceived store of wealth.

Let’s take a closer look for those 3 defensive stocks in case of Brexit: National Grid plc, SSE plc and Severn Trent plc…

Source: The Motley Fool

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