Today (March 23) the stock market got warm. First thing FTSE100 has dipped and entered correction territory, meaning its decline from its recent high has been over 10%. But as I write, the index has rebounded strongly.

The reason for this chaos, of course, is the highly unpredictable President Trump, who has threatened to destroy Iran’s energy infrastructure while trying to assure everyone that the conflict will end soon.

With the outcome uncertain and the Strait of Hormuz still effectively blocked, more and more investors now expect high inflation, interest rate increases and possibly even a recession. So the risks multiply and the market reflects this.

Now I invested throughout Trump’s first term, 2017–2021. And during this period, the pandemic also broke out, which also caused enormous fear and uncertainty.

However, the fact remains that the FTSE 100 is higher today – even after the recent pullback – than it was five years ago. And even if the conflict plunges the global economy into recession, I fully expect the Footsie to rise in the future as markets peaceful down.

London could benefit from this

Indeed, Trump’s policy mismanagement could even be beneficial London Stock Exchange. That’s the view of analysts at Berenberg, whose survey of over 400 global investors found that more than a third plan to boost their exposure to British shares next year.

Generally speaking, UK shares are cheaper than overseas shares. Many of them pay decent dividends and are defensive in nature, while not being exposed to the potential disruption of artificial intelligence.

Mid-Cap Growth Stocks

One FTSE250 share Mam na oku is a leading manufacturer of nutrients and supplements for athletes Nutrition used (LSE:APN). It showed excellent progress in its interim results (published today) for the six months to January 31.

Revenue rose 55.6% to £74.5m, while adjusted pre-tax profit rose 53.7% to £20.9m. Management left unchanged annual revenue forecasts of approximately £140 million, representing 30% year-on-year growth.

However, the situation in the Middle East has an impact on shipping routes and the ability to serve customers there. As a result, management expects that “some reduction in volumes in the region in the second half“.

There is therefore a risk that the situation in Iran will worsen, disrupting shipping routes and purchasing activities in the Middle East. This can hurt your sales growth.

But from a longer perspective, I like what I see here. The expansive global sports nutrition, health and wellness market is driven by tens of millions of people losing weight with GLP-1 medications.

Doctors recommend a high-protein diet for people taking GLP-1. It’s therefore encouraging that Applied Nutrition has launched a range of high-protein foods from Morrisons. Early sales were powerful.

According to a recent McKinsey study, 84% and 79% of US and UK consumers, respectively, now consider well-being to be a top or significant priority. Indeed, it is their second highest personal priority after family.

Most importantly, most now view supplements as a necessity, not a luxury. So I think the company can continue to grow even during an economic downturn. Its products are intended for elite athletes, dedicated gym goers and everyday health-conscious consumers.

The stock is trading reasonably at around 17 times forward earnings. I’m tempted.