Dreaming of getting stinking rich by investing in UK share markets? There’s no reason why you shouldn’t. Thanks to products like the Stocks and Shares ISA — and the reams of sage advice that’s available from experts like The Motley Fool — our chances of making enormous returns on our invested cash have improved stratospherically.
You and I can even afford to fantasise about getting rich, retiring early, perhaps even making a million. The rapidly-expanding army of Stocks & Shares ISA millionaires that emerged during the last decade provides perfect evidence of what’s possible. And buying UK shares in the aftermath of the 2020 stock market crash can considerably boost your chances of making mountains of cash.
Making a million with ISAs
It’s a phenomenon that many investors seem not to have cottoned onto though. Market appetite for UK shares remains very weak as fears over a second stock market crash abound. A quick look at how those ISA millionaires made their fortunes following the 2008/2009 market crash reveals how those who’ve stopped investing in 2020 are doing things wrong.
The key to these ISA investors’ terrific success was quite simple really. They identified high-quality UK shares that had been grossly oversold and were thus trading under their intrinsic values. They bought in, sat back, and watched them soar in value over the following years as the economic cycle moved into recovery mode. Confidence flowed back into global share markets and corporate profits marched northwards again.
Reasons to expect a rebound
There’s no reason why ISA investors today can’t repeat the success of their predecessors of the 2010s, in my opinion. The impact of Covid-19 on the economic landscape promises to be severe. However, every stock market crash has been caused by a seismic, seemingly-insurmountable social, economic or geopolitical event. Yet the value of UK shares has always bounced back strongly. And those who’ve the courage to invest at the bottom of the market tend to be rewarded handsomely.
On top of this, one of the key reasons why UK shares rebounded in value after the 2008/2009 stock market crash remains in play today. Rock-bottom interest rates and huge quantitative easing programmes helped asset prices balloon during the 2010s. Central banks remain eager to maintain a similar course this time around too. The Federal Reserve has just ditched its inflation targets in a sign that interest rates should remain around current record lows. And the Bank of England continues to publicly flirt with the idea of introducing negative interest rates.
Getting rich with UK shares
I continue to buy UK shares in my ISA. I hope to ride the likely recovery in stock markets from recent lows and make a fortune in the process. And I think you should keep investing. With the help of The Motley Fool and its treasure trove of special reports you can supercharge your investment returns too.