I’m searching for the best buys for my Stocks and Shares ISA in 2022. Here are three great UK shares I’d purchase today to hold for years.
Latin fever
Demand for banking services in Latin America is tipped to boom. It’s why I’m considering snapping up Banco Santander shares for my portfolio. The financial giant has massive exposure to regional economic hotspots including Brazil, Argentina and Mexico where there are still many millions of unbanked citizens. This provides exceptional revenue opportunities as personal income levels rise quicker than in the West.
A word of warning however. Santander’s heavy exposure to Latin America could suffer from rocketing inflation in the US should it lead to extreme rate hiking by the Federal Reserve. The IMF just warned that “emerging economies should prepare for potential bouts of economic turbulence” in this scenario. This could lead to severe depreciation of local currencies in Latin America and large capital outflows.
Another top ISA buy
I think snapping up housebuilding shares such as Vistry Group (LSE: VTY) is a good idea amid ongoing inaction to solve Britain’s homes shortage. A report just produced by a House of Lords Committee says that a mix of uncertainty and delays to planning reforms is having a “chilling effect” on construction rates in the UK. As a consequence, it warns that government plans to build 300,000 new homes a year is under threat.
In this climate, it seems prices of Vistry’s properties will continue their rip-roaring ascent. At the same time, it’s likely that extreme competition in the mortgage market and lower-than-usual interest rates will remain in place to keep driving demand.
Housebuyer activity could jump if the Bank of England loosens affordability rules following an upcoming review too. And, of course, the government’s Help to Buy equity loan support scheme for first-time buyers is still running.
Vistry Group said it continued to witness “strong demand” for its homes in November’s most recent trading update. I’d buy it for my Stocks and Shares ISA even though sharply-rising building costs pose a threat to profits.
A FTSE 100 share to buy!
From a long-term perspective, I still think Santander’s global clout and strong market brand will make it a winner. I think the same could be said for FTSE 100 firm JD Sports Fashion too. I’m encouraged by the sportswear retailer’s (so-far) successful decision to expand its tentacles beyond Europe and into Asia and US in recent years. I also like the big investment it’s making to harness the e-commerce boom. JD posted record first-half results back in September.
I think JD Sports is a great way to ride soaring demand for athleisure products. However, I am aware sales could suffer badly if consumer confidence takes a tumble. A YouGov poll shows that two-thirds of Britons are worried about rising prices right now.
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer 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 considering a diverse range of insights makes us better investors.
