The Motley Fool

Best investments for 2020: 5 FTSE 100 shares I’d buy in the stock market boom

Image source: Getty Images.

The latest stock market run-up is instructive. The FTSE 100 at a five-month high, underlining once again that the market can turn around anytime. That market crashes don’t last. And more often than not, there’s no need to panic when they do.

If anything, they are a time to buy quality stocks. That doesn’t mean you have missed the investing bus, far from it. I reckon there are still solid stocks out there that can give great returns over the long term, exactly the way we at the Motley Fool like investments to be, making them the best investments for 2020. 

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...

As I see it, there are three stock market drivers right now. One, the Biden bounce. Two, Pfizer‘s announcement that its Covid-19 vaccine was successful in 90% trials. Three, numbers on the UK economy have been somewhat supportive, adding to the global recovery narrative. With GDP growth at 15.5%, the headline numbers supported the overall recovery, even though they probably didn’t add to it.

Best investment for 2020

News can come in tomorrow that will shake up the whole story, but so far it looks pretty stable to me. Based on this, I think there are at least five FTSE 100 stocks on my list of best investments for the rest of 2020. The first is the Irish construction biggie CRH, which I said I will buy if Biden wins, given the policy focus on infrastructure spending. Moreover, a growth recovery narrative also supports construction spending. It’s on my investing list now. 

A long-term buy

The Democrats’ push towards clean energy is another investing opportunity, I believe. FTSE 100 speciality chemicals’ supplier Johnson Matthey is set to benefit from this. This is because it’s producing a component used in electric vehicle batteries. In any case, as a long-term investor, I’m looking at the big changes on the horizon. These include more online commerce, cleaner consumption habits leading to more veganism, less tobacco and alcohol intake, as well as cleaner energy and climate change solutions. JMAT would be one example of the last kind of stocks. 

Return of the fallen

With a Covid-19 fix looking like it’s really just around the corner, lockdown victims have been rallying now. I think if we had bought them at their lows, they would already look like the best investments for 2020. But I think there’s a lot of steam to them even now, though there’s risk too. I think it’s time to look again at stocks like the hospitality biggie Whitbread and, if I’m feeling truly bullish, aviation stocks like International Consolidated Airlines.

I like FTSE 100 real estate stocks like Taylor Wimpey, based purely on the growth recovery story. Its share price has rallied on its positive trading update released a few days ago along with the bettering investor mood. I reckon it can rise more, especially with its positive outlook. I think in hindsight it could look like one of the best investments for 2020.

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!

Manika Premsingh 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.

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.