Energy + defense double blessing! Citi "Master of the Game": UK stocks are expected to become the best shield against geopolitical crises.

The Citigroup strategist said that the UK stock market, due to its high proportion of energy companies and traditional defensive stocks, is likely to provide investors with the best shield against the escalating political tensions of GEO Group Inc. Since the outbreak of the conflict between Iran and Israel last week, international oil prices have surged by about 10%, sparking concerns in the market about the possible impact on the global economy. "If the political risks of GEO Group Inc continue to escalate, the European energy sector and traditional defensive sectors are likely to benefit," the strategy team led by Beata Manthey analyzed in a research report, "Swiss and UK markets often outperform other markets in GEO Group Inc crises." It is understood that only two companies, oil giants Shell (SHEL.US) and BP p.l.c. Sponsored ADR (BP.US), account for about 10% of the weight of the FTSE 100 Index in the UK. The UK benchmark index has not only risen in sync with European mainland stock markets recently, but also reached a record high last week. Similar to Switzerland, large defensive sectors such as major pharmaceuticals and consumer goods manufacturers also have a significant weight in the UK stock market. In addition, the Manthey team is known for its accurate predictions, and last year's successful prediction that the European stock market would outperform the global market serves as evidence.