Many share investors feel like they’re stuck between a rock and a hard place. The FTSE 100 and FTSE 250 have made little-to-no gains over the course of the summer as share pickers fear a fresh collapse in UK share prices.
It’s clear that investors in UK shares need to remain extremely careful when it comes to investing their hard-earned cash. But it doesn’t mean that stock investors should run for the hills and stop investing altogether. As I’ve explained before, you and I probably can’t afford to stop trying to build a big retirement pot with UK shares given uncertainty over the future of the State Pension.
A precious pick after the stock market crash
Indeed, I’d argue that the 2020 stock market crash provides an exceptional opportunity to buy UK shares. Why? The initial crash and subsequent lack of investor appetite means that a huge number of UK shares are simply too cheap to miss right now.
Give me a few minutes to tell you about Sylvania Platinum (LSE: SLP), one of the companies on my own personal ISA watchlist. Each day it seems as if the outlook for precious metals is improving. And this makes UK shares like Sylvania a brilliant buy right now.
Ultra-loose central bank policy has helped propel metal prices to significant highs in 2020. It’s a phenomenon that appears here to stay, too. Late last week Bank of England Governor Andrew Bailey suggested that the bank might take steps to ensure “there is sufficient headroom for more potent expansion in central bank balance sheets when needed in the future”.
Bailey’s statement followed hot on the heels of the U.S. Federal Reserve’s announcement that it’s changing its inflation target. Why is this important? It’s a situation seen by many as paving the way for low interest rates to stay. I’d buy Sylvania shares to ride this favourable development for precious metal prices. And particularly as the UK share trades on a dirt-cheap forward price-to-earnings (P/E) ratio of 5 times today. The digger carries a 6% dividend yield too.
More UK shares that could help you get rich
Economically sensitive shares like housebuilder The Berkeley Group might be a risk too far for many. But I’d buy this UK share at today’s prices as I reckon its long-term outlook remains robust. As the boffins over at Hargreaves Lansdown have commented: “The UK housing market is relatively attractive… Brits still love to own their own homes, all political parties see the need for more housebuilding and mortgages are relatively affordable”.
Trading on a forward P/E ratio of 14 times and boasting a 4.5% dividend yield, I reckon this FTSE 100 share’s a brilliant dip buy for long-term investors.
Berkeley and Sylvania are a couple of the too-cheap-to-miss UK shares I’m thinking of buying today. There are many other quality stocks too good to miss after the stock market crash. And The Motley Fool’s epic library of special reports can help you dig out even more to help you get rich.
