Stock market crashes are hair-raising events, sure. But they shouldn’t stop us from trying to get rich from UK shares. While some see market crashes as a reason to sell up and head for the hills, we at The Motley Fool consider corrections as brilliant investment opportunities.
Investing £10k in UK shares today isn’t guaranteed to make you monster profits straight away. In fact, it’s quite possible that share markets will fall again in the near-term, given the range of issues knocking confidence like Covid-19.
The threat of even another market crash hasn’t blown my appetite for buying UK shares off course though. The key to successful investing is to buy stocks you’ll feel confident enough to hold for five-to-10 years, perhaps more. Over this sort of timeframe, a balanced portfolio packed with quality stocks will recover strongly from any immediate turbulence and deliver monster shareholder returns.
3 stocks I’d buy after the market crash
Let me fill you in on three UK shares I’m thinking of buying for my ISA today:
- I’m contemplating buying into 4Imprint Group for when the economic recovery kicks in. Demand for the promotional merchandise manufacturer’s products has tanked this year. But business is already beginning to pick up and City analysts reckon profits will rocket 350% in 2021. Edison estimates the promotional materials market was worth $23bn in 2019. Yet 4Imprint’s share only sits at around 3%. This gives it plenty of room to grow in the years ahead.
- Buying into gold stocks like Pan African Resources is a brilliant idea too. Even when the chaos thrown up by Covid-19 lessens and economic conditions slowly improve, a backdrop of ultra-loose central bank policies across the globe will maintain strong gold prices as inflationary concerns likely persist. The rate at which debt is falling at this South African digger (net debt halved during December-June) makes it an attractive investment for me today too. This share trades on a dirt-cheap forward price-to-earnings (P/E) ratio of 11 times.
- I love bargain UK shares and so ECO Animal Health Group is on my radar as well. The animal healthcare market is booming and should continue to do so. According to Mordor Intelligence, this market will grow at an annualised rate of 8% through to 2025. Yet I don’t believe this bright outlook is baked into this AIM stock’s share price today. With earnings tipped to rise 35% this fiscal year ECO deals on a forward price-to-earnings growth (PEG) of just 0.8.
Get rich with more UK shares
Buying these UK shares is a brilliant idea for those who want to enjoy stunning returns in the years ahead. But they’re not the only top stocks worth buying after the market crash. With a little bit of research — and some helpful pointers from experts like The Motley Fool — you can build a formidable shares portfolio at little cost right now.
The post Stock market crash: I’d invest £10k in these 3 UK shares in an ISA to make a million appeared first on The Motley Fool UK.
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended 4imprint Group. 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.
Motley Fool UK 2020