Are you nervous about investing in UK shares today as the coronavirus crisis rolls on? You’re not alone. The FTSE 100 and FTSE 250 plunged again last week week as the spectre of more economy-crushing lockdown restrictions came into view. It certainly wouldn’t surprise me if another stock market crash occurred in the not too distant future.
Market confidence is at rock bottom, but I’d argue that it needn’t be. It’s a fact that 99.9% of successful UK share investors don’t make their fortunes overnight. Stock market crashes can take a bite out of your long-term profits, sure. But past form shows that they don’t have to stop you and I making terrific returns. Stock pickers who buy shares and cling on to them for 10 years or more make average returns of at least 8%.
Keeping the faith
They key is to continue buying UK shares during economic upturns and downturns. In fact buying after market crashes is a great idea if you want to turbocharge your long-term returns. It allows you and I to pick up top-quality stocks for a fraction of what we’d have paid for them at any other time, and only to sell them at a significant mark-up further down the line once economic conditions — and consequently investor appetite — have picked up.
I understand that my words will fall on many deaf ears though. And that’s okay. The Covid-19 crisis poses major macroeconomic, social, even geopolitical challenges that may make investors nervous. But there are plenty of UK shares out there that should suit even the most pessimistic of ISA investors.
Top UK shares for ISA investors
Take Begbies Traynor as an example. This company provides insolvency services and a range of other resources to businesses in distress. And so the amount of business it does rockets during economic downturns like this. According to the ONS just 84% of British firms are trading. Sadly the number of businesses going bust looks set to balloon with the current furlough scheme ending and new lockdown measures being introduced.
There are many UK shares whose operations will be largely unaffected by fresh Covid-19 lockdown measures too. In fact, demand for Codemasters Group’s video games could receive a boost as housebound citizens keep themselves entertained. Netflix will continue to see strong uptake of its streaming services. And Amazon will keep reporting strong sales volumes as people decide to shop from the safety of their homes.
Helping you to make BIG returns
Amazon et al are just a few stocks that could thrive in the event of a second lockdown. By browsing The Motley Fool’s treasure trove of special reports and timely articles it’s possible to discover even more to help you make decent returns despite the tough economic outlook. So do some research and keep investing in UK shares today.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon and Netflix and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. 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.