The 2020 stock market crash has left many investors feeling shellshocked. Fears of a second Covid-19 wave has dampened buying appetite for UK shares even more. Key share indices like the FTSE 100 have flatlined following an initial relief rally.
It’s easy to be swept up in the panic, sure. But it’s important to remember that such volatility is only ever temporary. Over a number of years, the impact on stock market crashes tends to be quite superficial. Studies show us that investors can make a mighty average annual return of 10% over a longer time horizon. No wonder the number of ISA millionaires in Britain has boomed in recent years.
Get Foolish with UK shares
The Motley Fool’s mission statement includes the line that “investing in great businesses, for the long term, is the most effective path to wealth.” And it’s our job as writers to dig out some of these gems that could help you get rich and retire early. I reckon the following value stocks are brilliant buys following the crash:
- Wynnstay Group is a great all-rounder for value investors today. It sports a forward price-to-earnings (P/E) ratio of 12 times for 2020, along with a big 4.5% dividend yield. This is a share that should please even the most nervous of stock pickers too. As a seller of agricultural products it has the same sort of defensive qualities as food producers and retailers. We need to keep our bellies full, economic downturn or not. So UK shares like this should perform more resiliently than most in the near term.
- Sylvania Platinum is a great UK share to buy for a couple of reasons. The mining giant can expect investment demand for its precious metals to continue rocketing as concerns over the global economy rattle on. And it’ll see industrial demand for its commodities to boom as the economic recovery kicks in. I’d suggest a forward P/E ratio of just 5 times makes it worthy of serious attention right now.
- WPP also looks too cheap to miss today. Not only does the FTSE 100 company trade on a low forward P/E ratio of 11 times, it boasts a bulky dividend yield north of 4% for 2020 too. There’s no doubting that the advertising giant will endure weak revenues as the global downturn develops. But it’s accelerating cost cutting to ride out the storm. And, over the long term, its future remains bright. Indeed, its rising investment in the fast-growing digital arena in particular should pay off handsomely once the economic recovery begins.
Buy some bargains!
It’s clear then that the stock market crash leaves a world of opportunity for share investors. It allows you and I to buy some terrific UK shares at dirt-cheap prices. Companies which are likely to soar in value as economic conditions improve. I believe the opportunity for share investors to go out there and make a million is as strong as ever.
