The $C (-1.15%) currently recommends the FTSE 100, as it is well suited as a hedge against the risk in the Middle East. This is illustrated by 3 factors.
- The FTSE 100 is driven by energy companies such as $SHEL (+1.38%) and $BP. (+1.32%) dominated. These benefit from geopolitical tensions and thus provide a natural hedge.
- The FTSE has a high weighting in defensive sectors such as pharmaceuticals, such as $AZN (+0.77%) and consumer goods, such as $ULVR (-0.92%) as. These sectors are historically resilient to geopolitical problems.
- Many companies in the FTSE 100 generate the majority of their sales outside the UK. This makes them less vulnerable to domestic risks and more resilient to global uncertainties.
๐ข๐๐๐๐๐๐๐๐ ๐๐๐พ๐๐ ๐ป๐๐๐๐๐๐ผ๐๐พ & ๐ฒ๐ผ๐๐๐พ๐๐๐พ๐ ๐ ๐๐๐๐พ๐ ๐๐๐๐๐พ ๐ค๐๐พ๐๐๐ ๐๐๐ฝ ๐ฝ๐พ๐ฟ๐พ๐๐๐๐๐พ ๐ฒ๐พ๐๐๐๐๐พ๐ ๐บ๐ ๐ ๐๐๐๐พ๐๐๐๐พ๐ ๐ ๐พ ๐ฎ๐๐๐๐พ๐๐ฟ๐๐๐๐พ๐, ๐ฟ๐บ๐ ๐ ๐ ๐ฝ๐๐พ ๐๐ ๐๐ป๐บ๐ ๐พ๐ ๐ฑ๐๐๐๐๐พ๐ ๐๐พ๐๐๐พ๐ ๐๐๐พ๐๐๐พ๐.
