How I’m preparing my ISA for the great stocks and shares bull market of 2025 

These investors are optimistic for an ongoing bull market next year, so here’s how I’m getting my Stocks and Shares ISA ready.

| 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.

Silhouette of a bull standing on top of a landscape with the sun setting behind it

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.

My Stocks and Shares ISA performed quite well in 2024. But the reality is the general performance of the market’s been a big contributor to its gains. 

The good news is there’s a lot of optimism out there for 2025. Trading and investing platform eToro recently surveyed 10,000 retail investors from 12 countries. Around 59% believe the bull market will continue next year.

Modest UK valuations

Nevertheless, analyst Sam North from eToro said high retail investor sentiment sometimes leads to a market pullback. However, US stocks often perform well when a new President starts.

Should you invest £1,000 in Vodafone 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 Vodafone made the list?

See the 6 stocks

I reckon American investors tend to be enthusiastic much of the time, which leads to some of the high company valuations often seen across the pond. The survey revealed optimism about some of the popular names such as TeslaAppleAmazonNvidia and others.

Here in the UK, I’d argue we tend to be more reserved with a stronger focus on valuation. Meanwhile, all the general economic challenges and shocks of the past few years have left many UK companies looking cheaper than their US peers. 

My guess is that general sentiment in the UK may be less optimistic than eToro’s survey suggests. But for investors with a long-term mindset, such a situation can be an opportunity to find decent value in the stock market.

Sometimes it can pay to adopt a bit of a contrarian mindset. When valuations have been beaten down, any positive company or general economic news ahead can ignite share prices. So I reckon there’s a fair chance of a bull market for UK shares through 2025.

I’ve been preparing by working hard on my watchlist and buying shares now for my stocks and shares ISA. For example, I’m attracted to Billington Holdings (LSE: BILN). The company looks like it’s been unloved and out of favour with investors for some time, resulting in a low valuation.

Ahead of expectations

However, in December, the structural steel and construction safety solutions specialist released a positive trading update. The directors upgraded the profit forecast and said the full-year results for 2024 will be ahead of previous expectations.

The announcement moved the share price higher and it’s possible the business may drive further gains ahead for shareholders.

Created with Highcharts 11.4.3Billington Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Chief executive Mark Smith said the firm has a solid” order book and a “very healthy” pipeline of future opportunities that are close to conversion. 

Meanwhile, with the stock in the ballpark of 499p, the forward-looking price-to-earnings (P/E) ratio’s around nine for 2025. I think that valuation looks undemanding when the outlook for the business is so optimistic.

However, although the company has a strong-looking balance sheet it operates in a cyclical sector. So there’s a risk of volatility in the business ahead for long-term shareholders. It’s also a small company with a market capitalisation of just £65m or so, suggesting even more uncertainty.

Nevertheless, I see the stock as well worth investors’ further research and consideration time now as a potential investment for 2025 and beyond.

Should you invest £1,000 in Vodafone 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 Vodafone made the list?

See the 6 stocks

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.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Kevin Godbold has no position in any of the shares mentioned. The Motley Fool UK has recommended Amazon, Apple, Nvidia, and Tesla. 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.

Pound coins for sale — 51 pence?

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

Investing Articles

I was wrong about the Tesla stock price!

Tesla stock's been affected more than most by ‘Liberation Day’. But our writer has other concerns about Elon Musk’s company.

Read more »

Investing Articles

What’s happening to the Rolls-Royce share price now?

The Rolls-Royce share price has taken a knock from US trade tariffs, but it's still gained more than 50% in…

Read more »

Investing Articles

10 UK shares that are 50% or more off their 52-week highs

These UK shares have been hit hard. And Edward Sheldon believes there could be some opportunities for those with a…

Read more »

Man smiling and working on laptop
Investing Articles

Could IAG’s share price surge over the next year? These analysts think so!

IAG's share price has sunk, reflecting growing concerns over the impact of trade wars on airline profits. Is this a…

Read more »

Smiling white woman holding iPhone with Airpods in ear
Investing Articles

£10,000 invested in Apple shares last week is now worth…

Apple shares are down 18% over the past week. It’s a truly phenomenal downward movement, but investors may want to…

Read more »

Investing Articles

Are shares like Tesco a safe haven for investors?

Christopher Ruane sees a lot to like about Tesco shares. But does he see them as a safe heaven in…

Read more »

Young mixed-race woman looking out of the window with a look of consternation on her face
Investing Articles

The 2025 stock market sell-off could be a once-in-a-decade opportunity to build wealth in an ISA

If a long-term investor has cash sitting in an investment ISA, now could be a good time to put some…

Read more »

pensive bearded business man sitting on chair looking out of the window
Investing Articles

Is now a good time to start buying shares?

Stock market turbulence can be alarming, but it can also offer opportunity. Our writer considers whether now could be the…

Read more »