Our view of the 2020 stock market crash couldn’t be clearer. Rather than pull up the drawbridge and wait for things to calm down, investors should grab the bull by the horns and buy UK shares while others dither.
We’re not cavalier here at The Motley Fool. We simply know a terrific investing opportunity when we see it. A lot of dogs have been sold off during the recent stock market crash. But a terrific number of top-quality UK shares have also been cruelly cut loose during the sell-off. This provides a chance for you and I to build a deep and balanced portfolio of stock market stars at little cost.
History shows us that UK share prices always come roaring back in the years following stock market crashes. This is how a huge number of British investors made millions after the 2008/09 banking crisis. They bought stocks for next to nothing and watched them balloon in value as the economy improved and profits headed northwards again.
10% dividend yields!
So why not try and do the same? Here are three white-hot UK shares I’m thinking of buying following the stock market crash:
- FTSE 100 investors need to give Aviva a close look at current prices. The insurance goliath trades on a bargain-basement price-to-earnings (P/E) ratio of 6 times. But that’s not all that attracts the eye. A near-10% dividend yield gives plenty for income seekers to shout about too. Trading is tough right now following the Covid-19 outbreak. However, the possibility of more bumper dividends coming down the line — and funded by the possible sale of its European and Asian operations — makes it a brilliant dip buy today.
- Buying bullion producers like Highland Gold Mining is a good idea as forecasters steadily hike their precious metal price forecasts. The boffins at UBS are the latest to upscale their price predictions in view of extreme central bank money printing and intense economic uncertainty. They predict gold will continue to hit record highs and average $2,100 per ounce in 2021, up from current prices of $1,930. Highland Gold Mining is a particularly great buy given its low P/E ratio of 12 times and chunky 4% dividend yield.
- Kape Technologies doesn’t pay a dividend but it’s a UK share that’s too cheap to miss. Its forward price-to-earnings growth (PEG) of 0.2 fails to reflect the fact that demand for its cybersecurity software is poised to rocket as homeworking takes off all over the globe. Employers expect 37% of people to work from home following the coronavirus crisis, a recent survey from the Chartered Institute of Personnel and Development showed. This compares with less than a fifth before Covid-19.
Getting rich with UK shares
Kape Technologies et al are just a few of the undervalued UK shares I think are top buys today. You can find even more by browsing The Motley Fool’s epic library of special reports. They could help you get rich and possibly even make a million.