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Beat a second stock market crash! 7 UK shares I’d buy in an ISA to protect myself from near-term volatility

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Market confidence isn’t exactly imploding right now. But, as the threat of a return to strict lockdown conditions grows, demand for UK shares continues to splutter. Investors should be braced for a second stock market crash before long.

It’s not just stocks that are highly geared to the British economy which stand to fall again. Infection rates are spiking again all over the globe. That means fresh restrictions are being reintroduced in other major economies as well. Another stock market crash would likely suck in UK shares of all colours.

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I’m certainly preparing for the eventuality of a second market crash in 2020. However, I’m not behaving like many of investors who’ve already starting selling their shares, or are getting ready to pull the plug. Instead, I’ve drawn up a watchlist of quality UK shares I’ll be looking at buying should they sink in value.

Preparing for a second crash

If you’re nervous about another stock market crash you might want to consider buying these UK shares today. I reckon they could rise over the near term while everything else goes to hell in a handcart:

  • Buying gold-producing UK shares is an obvious play in these conditions. Shares such as Highland Gold Mining and Shanta Gold have soared in value this year as intense macroeconomic fear has supercharged bullion prices. And if data from The Pure Gold Company is any indication, the demand outlook for gold remains rock solid. The metal retailer sold 683% more bars and coins to first-time investors over the past seven days in anticipation of fresh lockdown rules, it has said.
  • There are a great many counter-cyclical UK shares that would make great buys should Covid-19-related news continue to shock. I think B&M European Value could avoid the worst of a stock market crash as sales of the retailer’s low-cost goods would likely soar should Britain’s economy sink. Manolete Partners might also remain robust as demand for its services — it’s a specialist in insolvency litigation — would, in all likelihood, explode.
  • Utilities and telecoms companies could also see demand for their shares rocket before long. Few UK shares have the earnings visibility of these companies, thanks to the indispensable nature of their operations. Economic downturns or not, the likes of power grid operator National Grid, telecoms titan Vodafone Group and water supplier Severn Trent can expect the profits to keep rolling in.

More top UK shares to get rich with

Buying these defensive and counter-cyclical shares could prove a great idea in the near term. And I reckon all of these could provide excellent profits over the long run as well. If you want to find even more champion UK shares then check out some of The Motley Fool’s exclusive reports. They’re packed with top investment advice and exciting stock picks that could help you make a fortune.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

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