Here’s why September could be a great time to start a Stocks and Shares ISA

I wonder how many people, like me, still haven’t got their 2024 Stocks and Shares ISA going properly yet? Best not leave it too late.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Middle-aged black male working at home desk

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

For many of us, there are two times each year when we think mostly about investing in a Stocks and Shares ISA.

When we get close to the start of April and the end of the ISA year, there can be a last-minute panic to use as much of our ISA allowance as we can.

But it’s too late to invest any of the money we’ve spent over the year. And that’s money that we might have invested instead had we focused on it a bit earlier.

Should you invest £1,000 in NatWest Group right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if NatWest Group made the list?

See the 6 stocks

New Year resolutions

And then when the deadline rush is over, we relax a bit. But then we soon start thinking about how we’ll manage better this year. Well, I do, don’t you?

And that’s the second time, when we get into May and June full of good intentions. It’s like the New Year resolutions of the ISA world. But summer’s coming, and… well, there’s ages to go until next April.

No rush, the weather’s improving, and we might fancy a quick holiday.

Tough year

The past few years brought the extra pains of inflation and interest rates.

But as we hit September, it looks increasingly like we could be at a pivot point. Inflation is down, and we’ve already had one interest rate cut.

And money is starting to flow back into the stock market. The FTSE 100 has climbed 12% in the past 12 months, and it seems to be holding well above the 8,000 point level.

We’ve missed some of the best stock bargains. But then, I think we face a bit less risk now. That’s the way it balances.

Cheap shares

The stock market headlines are full of high-flying stocks, like AI darling Nvidia. But for my Stocks and Shares ISA I’ve always looked for buy-and-forget shares, like Lloyds Banking Group (LSE: LLOY).

Created with Highcharts 11.4.3Lloyds Banking Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

We can see the rough decade that bank stocks have had. And that’s a hint to future risk too. In tough times, financial stocks can be among the worst to suffer.

The share price has done quite well so far in 2024. But we still see Lloyds shares valued at a low price-to-earnings (P/E) ratio of about 9.5, and dropping on future forecasts.

The forward dividend yield is at 5% now, which is decent. It can’t be guaranteed, but analysts expect it to rise.

The economic risk of the past decade is far from over. But as a stock to stash away in an ISA for 20 years or so and forget, I think Lloyds is a good one to consider.

Buy the market?

I generally think going for a nice spread across the whole stock market can make sense.

I’d be tempted to add pharmaceuticals firm GSK. The sector goes through cyclical tough spells, but long-term demand has to be positive.

And then a housebuilder, maybe Taylor Wimpey. I already bought some Persimmon shares, and they show the short-term risks with this sector. But again, it’s a business with long-term demand.

That’s just a start, and I see plenty of buy-and-hold possibilities across a diversified set of sectors to build my Stocks and Shares ISA.

And I do think the prospects for UK shares look brighter than usual at the moment.

But this isn’t the only opportunity that’s caught my attention this week. Here are:

5 Shares for the Future of Energy

Investors who don’t own energy shares need to see this now.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — sees 2 key reasons why energy is set to soar.

While sanctions slam Russian supplies, nations are also racing to achieve net zero emissions, he says. Mark believes 5 companies in particular are poised for spectacular profits.

Open this new report5 Shares for the Future of Energy — and discover:

  • Britain’s Energy Fort Knox, now controlling 30% of UK energy storage
  • How to potentially get paid by the weather
  • Electric Vehicles’ secret backdoor opportunity
  • One dead simple stock for the new nuclear boom

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation now

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Alan Oscroft has positions in Lloyds Banking Group Plc and Persimmon Plc. The Motley Fool UK has recommended GSK and Lloyds Banking Group Plc. 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.

Like buying £1 for 51p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 8.5%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

More on Investing Articles

artificial intelligence investing algorithms
Investing Articles

Up 272% in just a year, is Palantir stock just getting started?

This writer recognises that Palantir has grown its business very well -- but does the stock price offer him an…

Read more »

Runner standing at the starting point with 2025 year for starting in new year 2025 to achieve business planing and success concept.
Investing Articles

Up 50%? The Aston Martin share price forecast is mind-blowing! 

If analysts are right, the Aston Aston Martin share price could absolutely rocket in the year ahead. Harvey Jones says…

Read more »

Investing Articles

As the S&P 500 drops, here are 2 Stocks and Shares ISA holdings I’m watching

Our writer has different views on how President Trump's tariffs might affect these two US holdings in his Stocks and…

Read more »

Surprised Black girl holding teddy bear toy on Christmas
Investing Articles

£10,000 invested in Tesla stock at Christmas is now worth…

Tesla stock has been one of best-performing investments of the past decade. But things haven't gone to plan for investors…

Read more »

Investing Articles

Up 279% in 5 years, could Meta stock keep soaring?

Meta stock has more than tripled in five years. This writer sees lots to like about the business but also…

Read more »

Pink 3D image of the numbers '2025' growing in size
Investing Articles

25% total return in a year? Is now the perfect time to buy BP shares?

BP shares are on the front line of today's global economic and political uncertainty but analysts think they can still…

Read more »

Affectionate Asian senior mother and daughter using smartphone together at home, smiling joyfully
Investing Articles

With Cash ISA changes coming, could now be the time to consider buying shares?

Changes to the Cash ISA could lead to greater investment in the stock market. This could be a good thing…

Read more »

Investing Articles

These FTSE 100 dividend shares just got cheaper, thanks to President Trump!

Investors buying dividend shares can lock in bigger long-term yields when share prices take a tumble. These two just did…

Read more »