Investment Strategies

Investors Hungry For Food, Beverages Stocks Amid Fresh Financial Turmoil

Wendy Spires Group Deputy Editor London 9 August 2011

Investors Hungry For Food, Beverages Stocks Amid Fresh Financial Turmoil

Amid the renewed financial turmoil, investors are turning to food and beverages as the sector most likely to provide the best returns this summer, a new survey from Barclays Stockbrokers has found.

Exactly 50 per cent of the investors surveyed by the firm plumped for the food and beverages sector as their top investment pick, while the second spot went to the travel sector with 19 per cent of the votes. Meanwhile, the DIY and retail sectors each garnered 11 per cent of the votes and leisure goods 9 per cent.

Looking at individual stocks within the travel sector, investors singled out travel agency Thomas Cook as their top stock (30 per cent of the votes), while low-cost airlines easyJet and Flybe were cited as interesting investment opportunities by 19 and 13 per cent of participants respectively. Another stock in favour is pub chain JD Wetherspoon, which was voted for by 13 per cent of those surveyed.

"Our clients continue to keep their fingers on the pulse when it comes to investment decisions; clients named tour operator Thomas Cook as the travel and leisure company they would be most interested in investing in; Thomas Cook recently announced that it is reducing its debt and strengthening its balance sheet," said Paul Inkster, head of product at Barclays Stockbrokers.

"Clients also seem keen to capitalise on the holiday season and cheap summer getaways, choosing easyJet and Flybe as other travel and leisure stocks on their investment radar. They are also looking to benefit from those staying on home soil by expressing their interest in high street pub chain JD Wetherspoon."

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