3 FTSE 100, FTSE 250 and AIM shares to own as the UK economy sinks

3 FTSE 100, FTSE 250 and AIM stocks to own as the UK economy slumps

The British economy appears set for a prolonged period of weakness. So I'm putting together a list of FTSE 100, FTSE 250 and Alternative Investment Market (AIM) stocks that could protect my wealth in this tough landscape.

In recent days, the National Institute for Economic and Social Research (NIESR) has warned of "even a chance that GDP growth will slow by the end of 2023 and a roughly 60% risk of a recession at the end of 2024". The think tank also said Britain faces five years of "lost" economic growth.Here are three stocks that I think could be useful additions to my portfolio in this harsh climate.I think buying build-to-rent companies like Grainger (LSE:GRI) is a good idea right now. And this despite the impact of higher construction costs on profits than usual.

Not only because rent collection remains relatively stable during economic boom and bust. That's because a chronic shortage of rental properties is pushing rental income through the roof. Similar rent growth at FTSE 250-listed Grainger reached 7.1% in the eight months to May.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (RICS), said "rents are likely to continue to rise sharply" due to a lack of supply. Weak housing construction rates and a steady exodus of buy-to-let investors look set to continue. Retailers are likely to be in high demand as consumers continue to feel the pressure. This makes B&M European Value Retail (LSE:BME) a ​​top buy, despite the problem of rising labor costs. The latest financial results showed sales at its flagship B&M stores rose 9.2% between April and June. The company is expanding rapidly to take advantage of the favorable business environment as well. It plans to have 950 B&M stores in operation, up from just over 700 today.

Delving into the management of Wilko's value chain and its 400 stores gives the FTSE 100 firm a further boost. I am confident that it will do well despite its lack of online presence, which could see it lose business to supermarkets and general retailers such as Amazon.

Pawnbrokers such as H&T Group (LSE:HAT) are also trading strongly as people look to get a little extra cash. Profits at Britain's biggest operator rose 31% in the first half of 2023, figures showed last week. This was driven by a 14% increase in its mortgage book (which includes short-term loans linked to customer property).

Through the retail sale of jewelry and scrap gold, AIM also provides investors with hands-on exposure to the precious metals markets. If the global economy struggles and inflationary pressures persist, gold prices (currently hovering near record highs) could head even higher.

I was also impressed by the company's travel money division, where transaction volumes in foreign currencies are reaching record levels. I would buy H&T stock even though it faces a lot of competition from moneylenders. Do you like the idea of ​​dividend income?The prospect of investing in a company just once, then sitting back and watching it potentially pay dividends over and over again?

If you are excited by the idea of ​​regular passive income payments as well as the potential for significant growth on your initial investment…Then we think you'll want to see this report on the Motley Fool Share Advisor — "5 Essential Stocks for Passive Income Seekers."

What's more, we're giving away one of these stock tips absolutely free today! John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is on the board of The Motley Fool. Royston Wild has no position in any of the stocks mentioned. The Motley Fool UK recommended Amazon.com and B&M European Value. The opinions expressed about the companies mentioned in this article are those of the author and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that we are better investors with a diverse range of insights.

 In the face of economic uncertainty, investors are seeking opportunities that can weather the storm. The UK economy, like many others, has experienced its share of challenges. However, the stock market continues to offer potential for savvy investors looking for long-term gains. In this article, we'll explore three UK shares across different indices - FTSE 100, FTSE 250, and AIM - that have the potential to thrive even as the UK economy faces headwinds.

Unilever is a well-established, globally recognized consumer goods company. With a diverse portfolio of popular brands spanning food, beverages, cleaning agents, and personal care, Unilever has proven its resilience across economic cycles. Even as the UK economy encounters challenges, consumer staples like Unilever's products remain in demand. This FTSE 100 stalwart has a history of steady growth, making it an attractive long-term investment choice. FTSE 100, Unilever, consumer goods, long-term investment, UK economy.

JD Sports Fashion is a leading retailer of sportswear and sneakers. Despite economic headwinds, the athleisure trend continues to gain momentum, and JD Sports has positioned itself as a key player in this space. The company's online presence, along with its well-known physical stores, offers a balanced approach to serving its customer base. As more consumers focus on health and fitness, JD Sports could see sustained demand, potentially boosting its performance even in a challenging economic climate. FTSE 250, JD Sports Fashion, athleisure, online retail, UK economy.

ASOS is a popular online fashion retailer, primarily targeting the millennial and Gen Z demographic. This AIM-listed company has shown remarkable growth, benefitting from the shift towards e-commerce, especially among younger consumers. Even as the UK economy faces uncertainties, online retail has become a staple for consumers, making ASOS a potential winner in the long run. Its ability to adapt to changing consumer behaviors and its international reach give it a competitive edge.AIM, ASOS, online fashion retail, millennial, Gen Z, UK economy.

As the UK economy navigates challenging waters, there are still investment opportunities that can withstand the storm. Diversifying your portfolio with strong and resilient companies across different indices, such as Unilever in the FTSE 100, JD Sports Fashion in the FTSE 250, and ASOS on the AIM, could position you for success. These companies have demonstrated their ability to adapt to changing circumstances and maintain growth, making them appealing choices for investors seeking stability and long-term potential.diversify portfolio, investment opportunities, stability, long-term growth, UK shares.