It’s that time of year when investors should start considering which UK shares to buy for 2021. Here are several that are on my own Stocks and Shares ISA watchlist:
Riding the Indian economic explosion!
I believe that getting exposure to India is a great idea for UK share investors like me. The country is set to enjoy outstanding economic growth in the short to medium term at least. The boffins at the Organisation for Economic Co-operation and Development (OECD), for example, reckon the Indian economy will rebound 7.9% in 2021. That’s much better than the 4.7% rise that they expect from the broader G20. The OECD forecasts another chunky 4.8% GDP rise for 2022 too.
UK share investors can get exposure to the world’s fifth-largest economy in a variety of ways. They can invest in Unilever, for example, whose gigantic Hindustan Unilever subsidiary makes it a major player in India’s personal care and household goods sector. They can buy shares in banking colossus Standard Chartered, pharmaceuticals giant AstraZeneca, or life insurance provider Prudential too. The list is huge.
I reckon buying Tata Motors is another great way to get rich from India. Sure, it means having to shop a little further afield as the car manufacturer trades on the New York Stock Exchange. But I think it’s a great way to make a mountain of cash.
Auto demand in India is expected to rebound strongly next year following the difficulties that Covid-19 has caused in 2020. Many forecasters are predicting a new government scrappage scheme in the months ahead. But I think Tata Motors is a great buy for the long haul, too. India is the fourth-biggest car market on the planet and is set to keep ballooning on strong population growth and rising wealth levels.
Riding e-commerce growth with UK shares
Grabbing, or building, one’s exposure to the world of online shopping is another terrific idea for 2021. E-commerce growth has been on a sharp uptrend for years now. And the impact of Covid-19 lockdowns has turbocharged online traffic still further.
Research from PYMNTS.com illustrates the point perfectly. It says that every three in four US consumers who shopped for Christmas during the recent Black Friday period made a purchase online. It also says that almost three-quarters of shoppers bought or plan to buy their Christmas purchases online. This is up almost 13% from last year.
I think Tritax Eurobox is a great UK share with which to play the e-commerce boom. This small cap owns more than a dozen ‘big box’ facilities on continental Europe. Rocketing online sales has worsened the chronic supply shortfall in large warehousing and logistics spaces in this region. Tritax Eurobox is well capitalised and as a consequence continues to build its portfolio of five-star assets through shrewd acquisitions. I’d buy this share today and hold it for many years.