With the UK moving forward with its lockdown-easing plan, it seems as if the outlook for the economy is on the up. With that being the case, I’ve been searching for so-called ‘recovery stocks’ to add to my portfolio to profit from the bounce. Here are two of my favourites.
FTSE 100 recovery stocks
At the top of my list is financial giant Barclays (LSE: BARC). I think banks are one of the best ways to play the pandemic recovery. These businesses could benefit from improving economic activity, leading to more lending and fewer loan losses.
At the same time, higher interest rates could boost profits, although it could be a while before the Bank of England decides to hike rates.
That’s not to say Barclays is without its risks. Another economic shutdown would inflict more pain on the lender and its clients. Further, if interest rates remain depressed … Read more