2 FTSE 100 stocks I would buy as the economy crashes

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These are scary times for the global economy. And like a FTSE100 equity investor I have to think very carefully about where to invest my hard-earned money.

The good news is that there are plenty of Footsie stocks that I expect to perform robustly even as economic conditions deteriorate. Here are two that I would add to my portfolio today.

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Related British Foods

Related British Foods (LSE:ABF) has two qualities that could help it outperform broader markets in the short term.

Food is something we cannot live without. Our spending on edibles remains broadly stable through good times and bad. ABF can therefore expect sales of its brands as Kingsmill Bread and oval drinks – as well as sugars and other ingredients – to stay robust.

Finally, I expect clothing from ABF’s Primark division to sell strongly, even as consumer spending declines. Clothing is another staple of everyday life and the company’s fashion and budget lifestyle offering will likely benefit as people turn away from more expensive retailers and brands to save money. .

All of this explains why City analysts believe the company’s earnings will rise 57% this financial year (through September) and another 6% next year. I would buy Footsie stock even if costs rise across the group.

Oh, one last thing. Another reason why I really like this FTSE 100 share is the very cheap price of ABF. PEG) of only 0.2. A reading below 1 suggests a stock is undervalued.

GSK

GSK (LSE:GSK) – or the stock formerly known as GlaxoSmithKline – is another safe-haven FTSE 100 stock I’m considering buying.

Like food, our needs for medical products do not change when times are tough. That’s why analysts think profits here will grow by 7% in 2022 and 2023. GSK sells some of the biggest prescription drugs, like HIV treatment. Triumeq and asthma fighter Seretide/Advair.

Buying pharmaceutical stocks like this comes with some risk. Lab failures can be common, and regulators are happy to reject drugs that aren’t up to standard. This can lead to huge additional costs for the manufacturer and a mountain of lost revenue if a product launch is delayed (or canceled entirely).

Yet GSK has an excellent track record on this front which fills me with confidence as an investor. You don’t become one of the top 10 drug developers on the planet by sales without a reliable track record of getting your drugs to market.

I would buy GSK shares as a way to build wealth in these uncertain economic times. And I would aim to keep them for years to take advantage of rising healthcare spending in emerging markets.

About Joan Dow

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