Global share markets are having a bit of a tear up as I type. The prices of UK shares have ticked broadly higher in Monday business too as hopes of a Brexit deal have increased. But market confidence remains fragile and another stock market crash could be just around the corner.
It’s our opinion that UK share investors need to be prepared for another market crash. Though this doesn’t mean they should get ready to sell. At The Motley Fool we believe that stock market crashes aren’t to be feared. Over the long run, share owners can still expect to make brilliant returns, crashes or not. And by buying in the aftermath of a crash, you and I can supercharge our eventual returns through buying quality UK shares at low prices and selling for a premium further down the line.
3 top stocks on my watchlist
As we saw during the crash of early 2020, shares of all colours tend to sell off sharply as investors panic. I’ll be watching the following shares and getting ready to pounce should they fall in value.
- Wynnstay Group is one UK share that could recover strongly soon after a stock market crash. As a provider of agriculture products, its operations are closely related to those of safe-haven food-producing companies. You’d be mistaken for thinking that Wynnstay is just a great buy for the near term though. Fellow farm product manufacturer Carr’s Group reckons agriculture production will rise 20% during the 2020s. And it reckons food demand will soar by 60% by the middle of the century. This is one UK share, then, I’d be happy to buy today in my ISA and hold for decades.
- Spectra Systems Corporation has, like Wynnstay risen in price in 2020 despite the worsening economic outlook. This is because the growing problem of fraud and counterfeiting continues to drive demand for this UK share’s services. Spectra — whose security solutions can be found on banknotes, consumer products and within the gambling industry — saw revenues edge 2% higher during the first six months of 2020. The steady expansion of its patent portfolio globally bodes well for meaty sales and profits growth over the longer term too.
- Strix Group is another strong riser in 2020. It’s one of the planet’s biggest manufacturers of kettle safety controls and therefore has terrific defensive qualities. We don’t stop drinking tea or coffee whenever economic downturns materialise, right? This UK share’s also in good shape to keep rising in value as it expands its geographic footprint in exciting emerging markets.
Getting rich with UK shares
These are just a few top UK shares on my watchlist as fears of a second stock market crash linger. But they’re just a few exceptional stocks that could protect you in the short term and make you a fortune over the long run. You can find even more by browsing The Motley Fool’s epic library of special reports and in-depth articles. So do some research and go shopping for UK shares today.
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.