Investor appetite for UK shares remains weak following early 2020’s stock market crash. Sure, the FTSE 100, for example, has regained the psychologically important milestone of 6,000 points in recent days. But Britain’s blue-chip index might struggle to gain more ground as we move into the latter stages of 2020.
Significant economic uncertainty is prompting investors to remain sat on the sidelines as the coronavirus crisis rolls on. But it seems that many are also keeping their chequebooks firmly under lock and key, waiting for another stock market crash to happen and for them to buy UK shares for even less.
It’s quite possible that UK shares could crash again before long. Aside from the threat to the global economy posed by a second wave of infections, signs of growing trade tensions could also prompt investors to charge for the exits.
2 cheap UK shares I’m looking at
I’m not waiting for UK share prices to crash again before investing, though. Firstly, there’s no guarantee that a second stock market crash is forthcoming. Secondly, there are already plenty of dirt-cheap UK shares for eagle-eyed investors to go fishing for.
I’ve continued building my Stocks and Shares ISA in recent weeks. Let me talk you through a couple more cheap UK shares I’m thinking of buying today:
- Food producer Tate & Lyle is a brilliant buy for a couple of reasons. Its forward price-to-earnings (P/E) ratio of 14 times fails to reflect its exceptional defensive qualities, in my book. It also carries a corresponding 4.2% dividend yield. This FTSE 250 stock has significant balance sheet strength to continue paying above-average dividends beyond this fiscal year too.
- Bank of Georgia also offers unmissable value of money thanks to its P/E ratio of 7 times for 2020. The Asian Development Bank reckons the Georgian economy will bounce back strongly following the coronavirus-hit 2020. They say it will soar 4.5% in 2021. This might be less impressive than some of the forecasts for some OECD nations. But I reckon Georgia’s a much better bet to enjoy strong growth beyond the near term, and certainly more than the UK where Brexit pressures look set to persist.
Get rich with The Motley Fool
So why wait for another stock market crash? Holding off until the market reaches its very bottom is unlikely to make a big difference to investors’s long-term returns. The important thing is to get the ball in play. You might not have a better value opportunity to buy UK shares.
As investment guru and co-founder of Oaktree Capital Management Howard Marks recently said: “waiting for the bottom is folly… if something’s cheap — based on the relationship between price and intrinsic value — you should buy. And if it cheapens further, you should buy more”.
So don’t wait to strike. The London Stock Exchange is packed with bargain-basement shares like Tate & Lyle that could help you get rich. And The Motley Fool’s epic catalogue of special reports can help you discover even more top-quality UK shares that are too cheap to miss today.
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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.