Hargreaves Lansdown's Derren Nathan: Where to take shelter when market volatility explodes

Companies that prosper 'in all weathers'

clock • 4 min read

In the days following the sell-off in early August, one of the worst-performing sectors was one of the old defensive favourites, utilities.

It is impossible to avoid short-term peaks and troughs in the market, but there are certain traits I look out for when searching for companies that can prosper in all weathers. Stable investor returns are hard to predict, but you can spot financial stability.   To my mind, a record of stable earnings and dividend growth is a good place to start, and that tends to be the traditional playbook. Logically speaking, financial stability should correlate with consistency of returns. 'Today is going to be carnage': How funds dealt with a week of market volatility Strong margins are a...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Companies

Sinking Pennon Group takes top spot as most shorted UK stock in Q1

Sinking Pennon Group takes top spot as most shorted UK stock in Q1

Kingfisher in second place

Eve Maddock-Jones
clock 02 April 2025 • 4 min read
Raspberry Pi's profits fall over 50% after 'transformative year' for the company

Raspberry Pi's profits fall over 50% after 'transformative year' for the company

Following June 2024 IPO

Linus Uhlig
clock 02 April 2025 • 2 min read
Kleinwort Hambros becomes UBP's UK arm following takeover

Kleinwort Hambros becomes UBP's UK arm following takeover

All London teams to move into Marylebone

Sorin Dojan
clock 01 April 2025 • 1 min read
Trustpilot