You might not believe it, given the lack of significant dip-buying following the 2020 stock market crash. But the heavy sell-off earlier this year has provided the best opportunity for you and me to get rich with UK shares for more than a decade.
Hundreds of Brits made millions following the 2008–09 stock market crash. They realised that while stock market crashes are painful in the short term they can’t stop us from making big money in the long run. They also clocked on that instead of costing UK share owners a fortune, crashes can be harnessed to make fortunes.
How? Sharp corrections allow us to buy high-quality stocks that have been oversold in the bloodbath. We can then watch them soar in value as economic conditions improve, corporate profits rise, and market confidence recovers. The FTSE 100 more than doubled in value between the2008–09 stock market crash and 2018. I reckon it could recover strongly, too – along with other UK share markets – following the washout of early 2020 too.
2 top UK shares
This is why I’ve continued buying UK shares for my own Stocks and Shares ISA. And it’s why I’d go shopping for more bargains should another stock market crash happen in 2020 or 2021. Here are a couple of top-drawer stocks I’d snap up in the event of another sharp correction:
- I didn’t buy Avon Rubber’s shares during the recent stock market crash. It’s a huge regret, as the mask builder has soared since then and just hit its most expensive on record above £40. I won’t think twice about buying if its shares fall again. This defence giant continues to add customer contracts at a terrific rate, paying testament to the quality of its products and its exceptional relationship with the US Department of Defense. And I’m confident that business will keep streaming in as geopolitical unrest rises, terrorist activity surges, and arms budgets across the globe subsequently keep rising.
- A soaring gold price has also driven the share prices of precious metals diggers sky high. I’d buy UK shares like Serabi Gold – a stock that just hit its most expensive level for more than four years, above 110p – in the event of a price pullback. Bullion prices have failed to push on since hitting new peaks above $2,050 per ounce in August. But this is on the back of some healthy profit-taking following the yellow metal’s astronomical rise. The truth is that a combination of intense economic and political uncertainty, along with rampant central bank money printing, mean that gold is in great shape to surge to new peaks before long. And this should thrust Serabi’s share price even higher.
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These are just two exceptional UK shares I’d buy in the event of a second stock market crash. The Motley Fool’s epic catalogue of exclusive reports can help uncover even more. They could even help you make a million like those savvy ISA investors of the 2010s.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Avon Rubber. 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.