Investor appetite for UK shares remains in the doldrums after the recent stock market crash. The FTSE 100 has actually retreated over the summer as Covid-19 fears continue to haunt investors. The FTSE 250 has risen but its gains have been fractional. Still, in my opinion, UK shares remain the best place to park your money after the stock market crash.
Bitcoin is nothing more than a gamble given ongoing concerns over the legitimacy of cryptocurrencies. Continuing volatility makes investing success here merely a matter of timing rather than sound decision-making, too. Meanwhile, rising property rental costs means that buy-to-let is no longer an effective way to build a pension pot, either. And the interest rates on offer from Cash ISAs are overshadowed by the rate of inflation.
2 dirt-cheap UK shares I’d buy today
Okay, UK shares continue to struggle for form following the 2020 stock market crash. But for long-term investors the crash provides an exceptional buying opportunity. Why? There are scores of high-quality shares trading at cheap prices as market confidence wavers. You and I can buy these today and watch them soar in value as economic conditions steadily improve and market confidence recovers.
I’ve continued to buy UK shares in my own Stocks and Shares ISA. And here are some more cheap British stocks I think are too cheap to miss today:
- It doesn’t matter that the global economy faces colossal near-term trouble. I’m confident that LoopUp Group still has the capacity to deliver delicious shareholder returns. Revenues at the cloud computing services provider rocketed 43% during January to June as the growth of home working drove demand. This upward trend is likely to last for years to come as companies the world over steadily switch to more flexible working plans. Oh, and this UK share trades on a low forward price-to-earnings growth (PEG) ratio of 0.3 right now.
- I’m confident that Bank of Georgia has ample scope for stunning price growth in the years ahead, too. Today it trades on a forward price-to-earnings (P/E) ratio of just 8 times. That’s a figure that fails to reflect the exceptional GDP growth the Eurasian country is tipped to enjoy during the 2020s. As Standard & Poor’s notes: “policymakers’ efforts to widen Georgia’s economic base, diversify its export geography and foreign investment, and develop its infrastructure are likely to maintain strong economic growth”. As Covid-19-related economic turbulence relents, the likes of Bank of Georgia should get back on the road of mighty profits growth.
Getting wealthy with a Stocks and Shares ISA
By continuing to buy UK shares I’m hoping to follow the hundreds of Britons who made millions in Stocks and Shares ISAs following the 2008–09 stock market crash. They bought on the dip and watched the prices of their shares explode in the following decade. And while Covid-19 has created plenty of uncertainty, a well-balanced portfolio of quality UK shares should still generate great returns in the years ahead.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended LoopUp Group. 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.