The 2020 stock market crash has scared off plenty of would-be and existing investors from buying shares. Stock markets remain extremely volatile too. And the possibility of a second market crash in the coming weeks or months continues to dominate investor thinking.
Bring it on, I say! But let me be clear. I’m not suggesting that stock investors go all ‘gung ho’ and load up on UK shares left, right and centre. With a painful (and possibly prolonged) global recession around the corner you should only be considering companies with robust balance sheets and decent economic moats (in other words, advantages over their industry rivals).
However, the recent stock market crash has left many top firms trading on valuations that are too good to miss. And another market crash would create even more terrific dip-buying opportunities that could help you and I enjoy monster returns, and possibly even make a million.
Buy into the stock market crash
Becoming a stock market millionaire is often an issue of good timing and seizing opportunities. And there are simply too many cheap UK shares to ignore following the FTSE 100’s market crash to 10-year lows in March. By buying in at the rock-bottom prices of today, investors give themselves a chance to make blockbuster returns over the long run as share prices steadily improve over time.
You might be tempted to just invest in FTSE 100 shares today. Their considerable balance sheets might be appealing with a global recession developing. Many can attribute their blue-chip status to one or more of those economic moats too. But share pickers shouldn’t restrict themselves to the Footsie in their quest to make a million.
2 UK shares with millionaire-maker potential
Take brickmaker Ibstock as an example. I bought this FTSE 250 share myself because Britain needs to accelerate housebuilding over the next decade. with government targeting up to 300,000 new homes each year. No wonder City analysts expect it to bounce back from a troubled 2020 with a 98% earnings rebound in 2021. I’d use its near-50% share price decline this year as a top dip-buying opportunity.
I don’t own shares in Bushveld Minerals right now. But it’s firmly on my watchlist as it has the potential to deliver spectacular profits growth over the next 20 to 30 years, I feel. The global energy storage market is tipped to explode through to 2035 at least and as a major vanadium producer, the AIM stock should capitalise considerably on this trend. Its shares have dropped 30% in value since the end of 2019, and I reckon this provides a sensational buying opportunity.
So don’t let the prospect of a global recession put you off. There remain plenty of brilliant UK shares out there that could still help you make a million. And the recent stock market crash provides the opportunity to load up on these top companies at dirt-cheap prices.
Royston Wild owns shares of Ibstock. The Motley Fool UK has recommended Ibstock. 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.