Investor confidence remains exceptionally brittle following the 2020 stock market crash. Both the FTSE 100 and FTSE 250 continue to struggle near recent multi-month lows. But things could get even worse. With Covid-19 infections still climbing relentlessly, I wouldn’t be surprised to see UK share prices crash again before too long.
My appetite for UK shares hasn’t waned however. And I don’t think yours should either. It doesn’t matter which stage at the economic cycle we find ourselves at. You and I can still profit from share investing.
For tough times like these we can buy defensive stocks like utilities providers, telecoms operators, general insurance providers, food producers or drugs manufacturers, for example. And there are plenty of these types of shares to choose from.
3 top stocks I’m looking at
That said, you and I shouldn’t just consider buying companies in defensive or counter-cyclical sectors during this economic cooldown. There are plenty of UK shares in other industries that should deliver great shareholder returns in the near term and beyond. I’m considering buying these stocks for my own Stocks and Shares ISA today:
- Gambling colossus 888 Holdings has rocketed in value this week after announcing better-than-expected trading in the three months to September. This is no flash in the pan and I expect there’s much more to come. 888 is benefitting from the soaring growth in the online gambling sector, its brand strength in the casino and poker sub-segments, and its expansion into hot markets like the US. This is one UK share I’d buy today and hold for years.
- B&M European Value Retail’s another top growth stock for ISA investors. Demand for its low-cost goods is likely to soar as cash-strapped shoppers rush through its doors. And the company is stepping up expansion plans to capitalise fully on the favourable trading environment. This week, the UK share announced plans to open a further 45 discount stores in this year alone.
- Buying shares in CloudCall Group, a provider of cloud-based communications services, is another good idea as the homeworking phenomenon takes off. In a sign of things to come, it said it signed a record 112 new customers in the quarter ended June. News it has received interest from “more sizeable organisations” in recent months bodes well for the future too.
Getting rich with UK shares
CloudCall et al are just a few of the UK shares I reckon will make investors a lot of money in the short term and beyond. And The Motley Fool’s respected library of exclusive reports can help you find even more. So don’t be put off by the prospect of another stock market crash. There’s still plenty of opportunity for you and I to make a fortune from UK shares despite the economic downturn.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended B&M European Value. 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.