Our view of investing for 2021 couldn’t be more emphatic. Sure, the macroeconomic outlook for the short-to-medium term is as clear as mud. And, as a consequence, UK share pickers need to be a lot more cautious than usual.
But we at The Motley Fool don’t think investors should stop buying UK shares entirely. In fact, buying shares after stock market crashes like that of early 2020 can make investors spectacular returns during the subsequent bull market.
Individuals can buy UK shares at bombed-out prices and sit back and rake it in as the global economy improves and corporate profits rebound, flushing confidence back into the market and helping British equities soar in value.
The FTSE 100 famously doubled in value in the nine years following the 2008/2009 crash which accompanied the banking crisis. The FTSE 250 did even better, trebling in value between February 2009 and May 2018.
I see no reason why UK share prices can’t also rocket following the 2020 stock market crash. Indeed, the colossal money pumping which inflated asset prices and aided the economic recovery during the 2010s has come to the fore again this year. And it’s likely to remain in play from 2021 onwards too.
Top UK shares on my ISA radar
I’ve continued to buy UK shares in my own Stocks and Shares ISA in the hope of riding the new bull market (whenever that may come). My most recent purchase is Games Workshop Group which I grabbed a slice of a fornight ago. There are plenty of other cheap shares on my radar for 2021 too, such as:
#1: Clipper Logistics
Clipper Logistics offers an attractive blend to share investors at current prices. Annual earnings are predicted to rocket 42% during the 12 months to April 2021. This leaves the small-cap trading on a low forward price-to-earnings (PEG) ratio of 0.6 times. This UK share carries a meaty, inflation-beating 2.2% dividend yield for the new year too.
the e-commerce logistics and warehousing specialist is riding the online shopping boom to full effect. It’s why I’ve already bought the business for my ISA in 2020. And I’m thinking of buying more after reading estimates from research specialists Industry Research who reckon the e-commerce market will grow at a stunning compound annual growth rate of 22.6% between now and 2025. I reckon this stock could help me get rich.
#2: Playtech
I think FTSE 250 stock Playtech is also worth serious attention at current prices. It’s expected to record a 68% improvement in annual earnings in 2021. Consequently this UK share trades on a bargain-bin forward PEG multiple of 0.2.
There’s nothing cheap or nasty about Playtech though. The business is the biggest supplier of sports betting and online gaming software on the planet. This means it’s well-placed to ride the internet betting phenomenon to the max. The experts at Statista reckon the size of the global gaming market will be worth a stunning $92.9bn in 2023, compared with $66.7bn today.