Are we staring at a once-in-a-decade opportunity to get rich from FTSE 350 shares?

While FTSE shares have disappointed lately, Harvey Jones isn’t worried. He sees this as a buying opportunity rather than a threat. Fortunes can be made at times like these.

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FTSE shares started last year brightly, but faded as 2024 drew to a close. The benchmark FTSE 100 index still delivered a total return of around 9% though, with dividends reinvested. That’s roughly double the return on cash. 

Some individual stocks did much better, with British Airways owner International Consolidated Airlines Group and Rolls-Royce Holdings pretty much doubling. Others didn’t do as well. That’s always the case.

While overall index performance dominates the headlines, it doesn’t matter so much to those who buy individual stocks. Many companies will see their share prices flying in a falling market, and vice versa.

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Can the UK stock market recover?

The FTSE All-Share is broadly flat so far this year, although of course it’s early days.

While the Labour Budget has caused controversy, there’s another factor at play. Investors were expecting interest rates to have fallen sharply by now. They anticipated six UK base rate cuts last year. Instead, they got just two.

We may only get two cuts this year as well. The reason is that inflation is proving sticky, and a combination of additional UK government spending and anticipated US tax cuts once Donald Trump takes power won’t help.

That’s good news for savers, because it boosts the return on cash. It’s good news for bond investors too, as it drives yields higher.

This allows investors to get a decent inflation-beating return from cash and bonds, which gives them less of an incentive to take risks with their capital by investing in shares. This explains why the FTSE has idled.

It’s particularly noticeable with big dividend income stocks. Some offer fantastic rates of income. FTSE 100 fund manager Schroders (LSE: SDR) has a blockbuster trailing yield of 6.83%. But given its volatile share price, many are willing to forsake that for the relative safety cash and bonds offer.

The Schroders share price has slumped 26% over the last 12 months and 47% over three years. The group has suffered customer outflows, as investment performance has disappointed. Exposure to the Chinese stock market hasn’t helped.

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

Today the shares look incredibly cheap, trading at around 12.8 times earnings. By comparison, the FTSE 100 average is about 15 times.

Schroders has lost some big investor mandates recently, but is the type of stock that should do well when investment sentiment picks up. When will that be? I have no idea. Nobody can say for certain but I do think this is a stock worth considering.

I’ll always choose shares over bonds

All I know is this. The UK stock market is cheap, at roughly half US levels. Savvy investors know that buying at lower valuations increases the margin of safety.

If history is any guide (which it may not be), those who invest wisely in turbulent times often reap the biggest rewards. By picking up quality companies when they’re undervalued, investors can position themselves for substantial long-term gains.

Rising interest rates, geopolitical tensions, concerns over the UK outlook and US trade tariff threats have all knocked share values lately.

Yet this offers investors an opportunity to get rich, with a long-term view. The key is to focus on quality companies with strong balance sheets, competitive advantages and proven management teams. I’m not selling shares, but buying them.

But there are other promising opportunities in the stock market right now. In fact, here are:

5 stocks for trying to build wealth after 50

The cost of living crisis shows no signs of slowing… the conflict in the Middle East and Ukraine shows no sign of resolution, while the global economy could be teetering on the brink of recession.

Whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times. Yet despite the stock market’s recent gains, we think many shares still trade at a discount to their true value.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. We believe these stocks could be a great fit for any well-diversified portfolio with the goal of building wealth in your 50’s.

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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.

Harvey Jones has positions in Rolls-Royce Plc. The Motley Fool UK has recommended Rolls-Royce Plc and Schroders 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

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