Has there been a better time for UK share investors to try and make a million, or more? Despite the uncertain outlook for the global economy I think today’s a great time to go shopping for British stocks.
The FTSE 100’s drop to seven-month lows, and similar slumps across other major share indices, provides another great dip-buying opportunity, in my opinion.
History shows us that long-term investors tend to make an average yearly return of somewhere between 8% and 10%. But those who invest following stock market weakness can supercharge their returns beyond even these impressive levels.
This strategy helped hundreds — some say thousands — of Stocks and Shares ISA investors become millionaires in the years following the 2008/2009 stock market crash.
Investors clearly need to be careful before splashing out on UK shares. A long economic downturn will play havoc with many companies’ profits performances and dividend policies. A great many stocks might not even survive beyond the short-to-medium term.
However, for those that do plenty of research, there’s a wealth of opportunity to get mega-rich over the coming decade.
3 brilliant UK shares that could rocket
Let me talk you through three top UK shares I’m thinking of adding to my own Stocks and Shares ISA. I think their share prices may even rocket again in the days and weeks ahead:
- There are a number of reasons why gold prices could zoom to fresh record highs again. Worsening news surrounding Covid-19 is the most obvious possible driver. But pontentially botched Brexit negotiations, an inconclusive US presidential election result, and a recent uptick in terrorist activity are all reasons why demand for the safe-haven asset could pick up. This means bullion producers, like Serabi Gold, could rise again before long. A low forward price-to-earnings (P/E) ratio of 6 times in this case certainly leaves plenty of scope for fresh price gains.
- I’m tipping B&M European Value Retail stock to gain value this month too. This UK share is slated to release half-year financials on Thursday, 12 November. And I’m expecting the value retailer to announce trading has remained strong as deteriorating consumer confidence boosts demand for low-cost foods and household products. B&M’s most recent update showed group revenues rose by more than a quarter year-on-year between April and September. Despite heady share price gains in 2020, the retail giant trades on a forward P/E multiple of 14 times. This makes it a steal, in my book.
- I reckon the Codemasters Group share price could also rise when its half-time numbers are unpackaged on Monday, 23 November. 2020 has proved to be a blockbuster year for home entertainment stocks like these, due to Covid-19 lockdowns. Codemasters saw revenues more than double during the six months to September. And I’m expecting trading to have remained strong since then, thanks to a slew of new title releases. This UK share also looks quite cheap as it trades on a forward price-to-earnings growth (PEG) ratio of 0.2. And this makes it a top buy for November.