Tuck away gold, it’s the classic asset for a crisis

Back in the 1970s anything you could pour down your throat or in a sink did well Russ Mould of AJ Bell

THE most obvious winners from a Corbyn government are companies that earn most of their money outside the UK.

They would benefit in two ways. First, their day-to-day business would be out of Corbyn’s reach and unaffected by his policies.

Second, if the pound fell and they were earning dollars or euros, for instance, their profits would seem higher when translated back into sterling. Dividends can benefit in this way too, as investors in big dollarearners, such as BP or Shell, have seen in recent years.

Under Labour, oil companies – and even mining companies – may be faced with some sort of green tax so their future is relatively uncertain.

However, stocks such as Unilever or Diageo may prove more resistant to Corbyn’s clutches.

Unilever’s products include PG Tips, Persil, Cif and Hellmann’s mayonnaise and its wares are used by two billion people every day. Diageo makes some of the best-known drinks in the world, such as Johnnie Walker, Smirnoff, Baileys and Guinness, and sells them in more than 180 countries.

Not only are these companies incredibly international, they also make things that UK consumers need and use every day – and when it comes to alcohol, consumption may even rise if conditions really go downhill.

As Russ Mould, of investment firm AJ Bell, points out: ‘In the 1970s, when the UK was really in trouble, anything you could pour down your throat or in the sink tended to do well.’

Other multinationals likely to be relatively Corbyn-proof include credit specialist Experian, paper and packaging group Mondi and Bunzl, whose products range from paper cups to supermarket labels to hospital bandages.

Recruiter Hays may be all right too. The firm has a big overseas presence and at home it works extensively with the public sector, including the NHS, where Labour has promised to boost funding and jobs. Housebuilders focused on low-cost homes could also benefit from Labour’s well publicised desire to mend Britain’s housing crisis.

MJ Gleeson is a case in point. Recommended by Midas at 104p in 2011, shares in the affordable homes specialist are now 810p, but should continue to make progress under Labour.

There are also some impressive niche businesses to look out for. Specialists in their field, these companies are making progress at home and abroad.

AB Dynamics, for example, makes robots and other kit used by carmakers when they are testing new models.

And Porvair makes specialist filtration systems used in industries from life sciences to plane manufacturing.

Both recommended by Midas in recent years, they are dynamic firms, respected around the world and their shares should prove resilient.

No share portfolio will be entirely immune to the machinations of an extremely Left-wing government.

But a diverse range of shares should help to counter the most extreme effects of radical new policies.

It is also worth remembering that classic, defensive asset – gold. Tuck some away. It is the ultimate investment for a crisis.