4 UK shares I’d buy to beat inflation and build wealth!

UK share prices have exploded at the start of 2023. But some share prices pared recent gains as investors worried about high inflation.

The latest US consumer price inflation (CPI) came in at a forecast-topping 6.4% in January. Meanwhile, the UK CPI reading of 10.1% for the last month remains disappointing.

As Nigel Green, chief executive of financial advisory firm deVere Group, notes:

“The market is now betting on a longer period of higher interest rates as it begins to heed the message from central bank officials, including from the US Federal Reserve, the Bank of England and the European Central Bank, that there is still a way to go to cool inflation in the face of energy markets strong employment and wage growth.”

4 hot UK stock sectors

The problem for investors is that high interest rates cause consumers to cut back on spending, which in turn affects the economy and the profits of certain companies.

However, this does not mean that UK stocks should be avoided. Investors can still find plenty to grow despite the tough macroeconomic environment.

Nigel Green has identified healthcare, luxury goods, energy and agriculture as four industries that must remain resilient in today’s landscape. He explains that the sector is “cmaintaining margins despite inflation and rising interest rates.”

In health care

CEO deVere said that “health is a strong sector because people need to stay healthy“. In fact, this theme has gained importance in the post-pandemic era.

Green also said the aging population and other demographic changes provide health-related companies with strong revenue potential. And he thinks the growing technology-driven sector also presents opportunities for investors.

I’m considering buying it GSK stocks for my current portfolio. That although expensive failures in the drug testing phase are extremely common. I expect demand for these drugs to continue to grow as populations grow and healthcare investment in emerging markets increases.

Another investment opportunity

Looking at other sectors, Green said that “luxury goods [companies] able to maintain margins due to the aspirational ‘elite and exclusive’ aspect of the sector“.

Burberry can help me to build wealth here, to name one example. Rapid fashion changes and poorly received collections can prove disastrous results. But encouraging, this FTSE 100 the business has an excellent track record on this front that is 167 years old. It also has excellent brand power that makes its products in high demand.

For energy, Green thinks “energy shortage in the world today“can make the sector a good place to invest in. Renewable companies like wind farm operators SSE could be a profitable stock to invest in here as the demand for clean energy increases. However, I am aware that unfavorable weather conditions have paid off in recent years.

Finally, Green believes that agriculture can be a good sector for investors. It’s because”developing markets around the world are eating meat“And when they do,”should produce more wheat“.

For this reason I am considering adding it Carr group to my portfolio. These small stocks provide fodder, farm machinery and fuel. I would buy even though the lack of suitable takeover targets could undermine our acquisition-led growth strategy.