The 2020 stock market crash provides the best investment opportunity you and I have seen for decades. History shows us that corrections of this scale only happen once in around 25 years. So can you afford not to invest in UK shares today if you want to get rich or retire early?
Obviously, investors need to be careful buying UK shares today. A lot of companies have seen their previously bright growth outlooks go up in flames. A great many are also in dire financial straits as the Covid-19 crisis batters their balance sheets. We’re talking about UK shares like battered cinema chain operator Cineworld.
But for those who are brave enough to carry on investing — and who take the time to do sound research to avoid duds like these — the rewards can be gigantic. They can buy quality stocks at low cost today and watch them detonate in value as the global economy rebounds.
3 top UK shares on my radar
I’ve continued to buy UK shares for my Stock and Shares ISA despite the challenging macroeconomic environment of today. And I’m thinking of adding the following stocks to my portfolio too:
- The precious metals price advance of 2020 shows these safe-haven assets are brilliant buys for troubled times like these. But could silver be a better asset to get exposure to than gold today? Silver’s rocketed to seven-year highs this year on strong sales to worried investors. But it’s also a great way to ride the eventual economic upturn as industrial demand will inevitably rise. This is why I’d buy shares in Hochschild Mining. The digger’s share price has fallen recently as production stoppages have hampered production. I believe this provides a great dip-buying opportunity for long-term investors.
- Media companies are among the quickest to recover when economic conditions begin to improve. UK shares like this benefit from a sudden spike in advertising budgets as companies splash the cash to make the most of improving consumer confidence. A recent poll from an ad technology giant suggests investors won’t need to wait long for this industry rebound either. This showed that 70% of respondents expect their marketing budgets to improve year-on-year in 2021. I’d buy ITV shares to ride this trend. Its forward price-to-earnings (P/E) ratio of 9 times looks too cheap to miss.
- Now Ryanair’s not a UK share for the faint-hearted. Rising Covid-19 infections rates all over Europe are pushing the recovery for the aviation sector further and further back. The worsening crisis is likely to increase the number of airlines going out of business too. That said, those who buy Ryanair’s shares could be significantly rewarded once things start getting back to normal. It has one of the strongest balance sheets in the business, helped by a recent share placement. And it will be one of the biggest beneficiaries of a smaller European aviation market when the dust finally settles.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended ITV. 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.