Confidence in UK shares continues to steadily erode. The FTSE 100 sank back below the 6,100-point marker on Monday as sellers responded to spiking coronavirus cases in Europe. It’s quite possible that another stock market crash could be around the corner, too.
I own UK shares myself but I’m not panicking. In fact, I believe the 2020 stock market crash provides a great buying opportunity. Many terrific UK shares can be bought at rock-bottom prices today. This means investors can supercharge their eventual returns by buying low and then sitting back to watch these stocks rocket in value as the economic recovery kicks in. Another crash would create even more bargains for eagle-eyed investors to snap up, too.
I’d buy more of this FTSE 100 stock
I already own Ashtead Group (LSE: AHT) in my Stocks and Shares ISA. But I’m tempted to buy more following the market crash. This is one of my favourite UK shares thanks to the steps it’s taken to boost its market share through lots of M&A. It’s a drive that should enable it to ride out the economic downturn better than many of its rivals and enable it to ride the recovery with roaring success.
My belief in this stock received an extra boost at the end of last week, too, following news that US home sales had hit their highest level in 13 years in June. US Federal Reserve money printing is supporting ultra-low mortgage rates that is driving home sales. And as a consequence construction activity in Ashtead’s biggest geographical market is also rocketing. I’m confident that demand for the company’s rental equipment might not suffer significantly in the near term after all.
More UK shares I’d buy today
There’s plenty of cut-price UK shares that are on my watchlist following the stock market crash. Electricity power grid operator National Grid (LSE: NG) is somewhere near the top. As the UK faces the twin threat of a Covid-19 hangover and Brexit pains this is a cracking safe haven for the years ahead.
This share is perhaps the ultimate buy for nervous investors. Humans can’t do without electricity even when broader economic conditions worsen. But National Grid’s appeal doesn’t end there. The blue chip also has a formidable advantage over many other utilities providers, too: it has a monopoly on keeping Britain’s pylons and substations up and running and thus faces no competitive threats.
Now National Grid’s share price probably won’t rip higher like Ashtead’s as the economic recovery takes hold. Profits here grow at a modest rate in the good times and the bad. But this stock remains one of the best UK shares to buy today because of its monster dividend yields. For the current fiscal year this sits at an eye-popping 5.5%. I’d happily buy either of these blue chips today. But they’re just a couple of the brilliant bargains available to UK investors today.
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Royston Wild owns shares of Ashtead Group. 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.