The Motley Fool

Don’t fear another stock market crash! I’d buy these cheap UK shares for my ISA in October

Image source: Getty Images.

I’m not worried about a second stock market crash. As someone who invests for the long term, I know share price corrections are to be expected. I also know that past form shows prices of UK shares always come roaring back following macroeconomic and geopolitical crises.

The FTSE 100 recovered from a number of significant setbacks during the 21st century alone to hit record highs in May 2018. Britain’s blue-chip index sailed through the dotcom bubble, the banking crisis, and the Chinese stock market crash to strike peaks close to 7,800 points then. I’m convinced UK share prices will recover strongly again in the aftermath of the coronavirus crisis too.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Getting rich with UK shares

History shows us that long-term investors tend to make handsome profits from UK shares. Over the space of a decade or longer, the average yearly return sits at between 8% and 10%. Those individuals that hit the upper reaches of that range — or possibly even exceed it — also buy in the aftermath of market crashes.

Stack of new bank notes

This is how hundreds of Stocks and Shares ISA investors made millions following the banking crisis. They bought low and watched their UK shares rebound in value as economic conditions improved. With this in mind, I’d happily buy these top stocks in my own ISA today. I reckon they could rocket in value this month too:

  • I recently explained how a muddy economic and political outlook could drive gold prices skywards in October. The same can be said for other precious metals like platinum and palladium, making UK shares like Sylvania Platinum top buys. This particular stock looks particularly cheap, as per its forward price-to-earnings (P/E) ratio of 3 times. Such a low valuation boosts the chances of significant share price gains significantly.
  • I’d certainly buy Unilever shares ahead of third-quarter financials, slated for Thursday, 22 October. Consumer goods giants like these don’t suffer significantly during tough economic times. And this particular one can expect heavyweight brands like Dove soap and Magnum ice cream to keep driving profits. The FTSE 100 company published solid results last time out in July. And I reckon it could repeat the trick later this month.
  • I’d also buy Gamesys Group stock before third quarter results come out on Tuesday, 20 October. The online gambling giant has seen its share price fly in 2020, thanks to a series of strong trading updates. And, back in August, it reported revenues doubled between January and June, due to strong trading in Asia and the UK. Expect another sunny set of numbers in late October.

Helping you to get rich

Gamesys et al are just a few UK shares which could soar in value this month. I’d buy them today and hold them for years. And there are plenty of more quality stocks in The Motley Fool’s library of special reports that I’d happily load up on today. I think they could make you and I seriously rich in the years ahead.

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge!

Royston Wild owns shares of Unilever. The Motley Fool UK has recommended Unilever. 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.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.