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Stock market crash: 3 reasons why the FTSE 100 could double! I’m buying UK shares to get rich

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Demand for UK shares remains pretty tame as Covid-19 concerns keep dip buyers rooted on the sidelines. It can take time for investor confidence to recover after stock market crashes. And with global coronavirus cases hitting new highs every day it could be a while before UK share prices begin to pick up again.

Those brave enough to continue investing today, however, could be taking their first steps to getting stinking rich. History shows us that equity markets always rebound strongly in the years immediately following a stock market crash.

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The FTSE 100 more than doubled following the 2008/2009 share market correction to hit record peaks above 7,500 points in mid-2018. Those who bought UK shares during the depths of the banking crisis a decade ago made an absolute fortune as stock prices soared. Some even made millions!

A person holding onto a fan of twenty pound notes

Will the FTSE 100 soar?

There’s a huge number of reasons why we could see the FTSE 100 could soar again the 2020 stock market crash. These include:

  • The possibility of a Covid-19 vaccine breakthrough. News that AstraZeneca was resuming trials of its vaccine has helped the FTSE 100 rise in recent days. There are more than 150 treatments currently in the testing phase, according to the World Health Organisation. Any one of these receiving widescale approval will significantly boost hopes of a V-shaped economic recovery.
  • Continued monetary support from central banks. Extensive quantitative easing programmes and interest rate cuts helped UK share prices soar following the banking crisis. Central banks quickly leapt into action again following the Covid-19 outbreak. And noises coming out of major central banks suggests they’ll continue to support the economic recovery long into the future.
  • The pound falling off a cliff. A great many UK shares listed on the FTSE 100 report in foreign currencies. Therefore their earnings columns receive a boost whenever sterling slides. With the chances of a no-deal Brexit seemingly rising, and the UK economy also performing worse than other major economies following the Covid-19 outbreak, the pound could be set for a long period of significant weakness.

Getting rich with UK shares

I’ve continued to buy UK shares despite the uncertain economic outlook. And I haven’t just searched the FTSE 100 for brilliant dip buys either. There are top-quality companies trading at rock-bottom prices all over the London Stock Exchange. They’ve the capacity to rebound strongly as the global economy begins to rebound and market confidence recovers.

Clearly, investors need to extremely careful. The Covid-19 crisis has battered the profits outlook for a great many UK shares. It’s also exerting colossal pressure on balance sheets and plenty of corporate collapses could be around the corner.

Still, share bourses like the FTSE 100 remain packed with investment opportunity. And experts like The Motley Fool can help you use the recent stock market crash to your advantage. They can help you find the oversold big-caps and boost your chances of making a fortune during the inevitable share market rebound.

You could even become an ISA millionaire in the process.

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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.

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