The value of my Stocks and Shares ISA took an absolute battering in early 2020. But it didn’t discourage me from continuing to buy UK shares.
As a long-term investor I believe in the potential for exceptional returns that stock markets can provide. Patient share-pickers like me tend to make an average return of at least 8% a year. Those that buy UK shares in the aftermath of a stock market crash like that of early 2020 can enjoy much, much better returns by riding the stock market recovery too. This is how hundreds of Stocks and Shares ISA investors became millionaires after the 2008/09 banking crisis.
Getting rich during the stock market rally
Here are six top UK shares I’m thinking of buying for my Stocks and Shares ISA today. I think they could make me lots of cash during the new bull market.
I’m expecting Trifast to soar in value as the economy rebounds and demand for cars picks up again. This UK share supplies a wide range of bolts, screws and other fastenings that hold cars together. And as a major component supplier to the world’s biggest motor manufacturers it’s well placed to ride the recovery.
Improving consumer spending power bodes well for life insurance suppliers like Aviva as well. Unlike general insurance products, demand for these sorts of policies drops during difficult macroeconomic times like these. But it is also one of the fastest to recover, meaning that FTSE 100-quoted Aviva can expect profits to bounce back rapidly. A low forward price-to-earnings (P/E) ratio of 6 times and dividend yield of 9% makes it an extra brilliant buy, I feel.
I’d also buy Hargreaves Lansdown shares as rising risk appetite propels demand for its services during the economic upturn. This is not all, as poor returns on traditional savings accounts will drive activity on its investment platforms. This FTSE 100 share’s website went down last week as bullish UK share investors piled into equity markets en masse.
Other UK shares for the economic rebound
General retailers are often at the forefront of stock market rallies as broader consumer confidence improves. I’d buy JD Sports Fashion in my ISA as it sells exclusive ranges from the world’s most desirable sports brands. This FTSE 100 stock’s also a great play on the rise of e-commerce and the rocketing popularity of the athleisure fashion segment.
An uptick in business activity should see demand for 4Imprint Group’s promotional goodies surging once more. This UK share supplies T-shirts, mugs, bags, pens and other kinds of products that can be emblazoned with company logos. And it generates almost all profits from the US which, as history has shown, will be the driving force behind the global economic recovery.
And I think the advertising upturn that will boost revenues at 4Imprint will also benefit broadcasters like STV Group. Reduced marketing spend has whacked turnover at the Scottish television giant in 2020. But ad sales are beginning to improve ahead of the critical Christmas period, suggesting that STV could already be turning the corner.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended 4imprint Group and Hargreaves Lansdown. 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.