The Motley Fool

Stock market crash: can you afford NOT to buy dirt-cheap UK shares in an ISA today?

Image source: Getty Images.

The 2020 stock market crash is the best investment opportunity that British investors have had for 10 years. It’s a full six months since the initial shock and appetite for UK shares remains extremely weak. While the Dow Jones has erased all of its losses for 2020, the FTSE 100 remains more than 20% lower, below 6,000 points.

This means that many top-quality UK shares can be snapped up at rock-bottom prices. These are unnerving times for investors and another stock market crash can’t be ruled out as Covid-19 continues spreading. But our view here at The Motley Fool couldn’t be more clear. If you want to make great returns from your UK shares portfolio you should buy after market crashes.

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...

Follow the ISA millionaires

Stock market crashes are brutal. Panicked people do desperate things and in the context of share investing, this means that brilliant blue-chips are sold along with vulnerable companies and the genuine duds. Even UK shares with strong balance sheets, defensive operations, strong competitive advantages, and counter-cyclical operations have been chucked on the bonfire.

This gives proactive investors the chance to steal a march on everybody and supercharge their long-term returns. UK shares like these can be bought at much cheaper prices today than the price at which you’ll eventually be able to sell them. As the economic cycle improves, profits rise again, and confidence returns to share markets, the price of said UK shares will balloon.

A person holding onto a fan of twenty pound notes

Buying on the dip is what allowed so many Britons to make millions during the 2010s. They bought UK shares in products like Stocks and Shares ISAs after the 2008/09 market crash and watched them soar in value. The global economy moved back into growth, supported by massive monetary support from central banks. I expect fresh money printing to bolster the recovery this time around too.

Remember the FTSE 100

The strong share price recovery following the 2008/09 stock market crash was no one-off either. Between 1990 and 2019, the FTSE 100 rose steadily and ended up soaring more than 220% in total. Yet this was a period that included events like the Asian financial crisis of the late 90s, the bursting dotcom bubble a few years after that, the 2008/09 banking sector meltdown, and the Chinese market crash of a few years ago.

These temporary setbacks weren’t enough to derail the FTSE 100’s impressive journey northwards. It’s true that Covid-19 poses unprecedented challenges to the global economy. But it seemed like the world was about to cave in during those aforementioned wobbles too. It didn’t happen, and those who kept buying UK shares made a killing.

Getting rich from UK shares

Investors clearly need to be careful when buying UK shares today. A prolonged and painful global downturn is a possibility and plenty of corporate casualties can be expected. But with the right investment strategy you can avoid these traps and still make excellent returns. And with the help of experts like The Motley Fool (and its library of special reports) you can boost your chances of getting rich following the 2020 stock market crash.

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!

Royston Wild has no position in any of the shares mentioned. 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.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.