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Stock market crash 2020: 3 reasons why you can still make a million

Many shares have rebounded after the recent stock market crash. This may cause some investors to feel that it is now too late to make a significant profit through buying equities, and that they should invest elsewhere to make a million.

However, some industries continue to offer wide margins of safety. Furthermore, the long-term recovery potential offered by the world economy, as well as the stock market’s past performance, could mean that now is the right time to buy a diverse range of shares to increase your chances of making a million.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Low valuations after the market crash

The stock market crash caused a wide range of shares to decline in value. While some of them have rebounded, a great many businesses continue to face an uncertain future. As such, their market valuations may be significantly lower than their historic averages in some cases.

This could present a buying opportunity for long-term investors. Certainly, sectors such as energy and retail could face continued challenges in the coming months as a weak economic outlook weighs on their prospects. However, through buying financially sound businesses when their share prices include a wide margin of safety, you could generate high returns as they recover in the coming years.

Of course, the threat of a second stock market crash means that diversifying across multiple companies and industries is paramount to limit overall risk. Through building a diverse portfolio, you may also be able to access growth opportunities in a wider range of industries, which may further improve your portfolio’s prospects.

Economic growth potential

While the economy’s weak outlook may prompt a second market crash, its past performance suggests that it is likely to deliver a recovery over the long run. Certainly, there have been some major recessions over past decades. However, the world economy has never been in a state of permanently negative growth.

Therefore, a return to more favourable operating conditions seems likely for the vast majority of businesses. With monetary policy being very accommodative in many of the world’s major economies, and fiscal policy tools being used to stimulate a recovery, now could be the right time to buy stocks while they do not reflect the prospects of improving economic performance in the coming years.

Stock market track record

Many share prices may have rebounded from the recent market crash, but history suggests that a rally is set to follow the current period of uncertainty. Previous bear markets have often taken many months, and even years in some cases, to give way to a sustained bull market that can produce new record highs.

Therefore, with the stock market crash still being a recent event, investors can look ahead to likely growth from share prices. Over time, new record highs are likely to be made by indices such as the S&P 500 and FTSE 100, which could improve your chances of making a million. 

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge!

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.