As an investor in UK shares myself I’m not cowed by the threat of a fresh stock market crash. History shows us that share prices always rally in the years following a sharp correction. There’s no reason to believe that things will be different this time around.
This is why I’ve continued to buy UK shares in my Stocks and Shares ISA. I’m hoping to follow the legion of Britons who invested in stocks during the depths of the 2008–09 banking crisis and emerged with million-pound shares portfolios. Buying UK shares is a great way to build a healthy financial nest egg for retirement. But if you really want to supercharge your returns, get rich and possibly retire early then buying after stock market crashes is a terrific idea.
7% dividend yields!
This is how those ISA millionaires I spoke about made their fortunes during the last decade. They loaded up on high-quality UK shares that were trading at low prices following the 2008–09 crash. And they sold them at a stunning premium after the rebounding global economy helped them soar in value.
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It’s true that plenty of UK shares face an uncertain future as Covid-19 continues to spread. US-led trade wars, Brexit, and political uncertainty in the US threaten to dent the global economy, too. However, there remains a great many stocks with rock-solid balance sheets that remain terrific buys today.
Here are a couple of cut-price UK shares I’d happily buy for my own Stocks and Shares ISA:
- Gold’s stepped back from recent record highs above $2,050 per ounce. But this is on the back of light profit-taking following the metal’s blockbuster 2020. There’s still plenty of scope for more price gains and this makes Petropavlovsk for one a brilliant buy right now. Expectations of ultra-loose central bank monetary policy has helped supercharge bullion prices this year. And the news flow on this front keeps getting better and better. The Bank of England commented on Friday that “[it’s] quite likely that additional monetary easing will be appropriate” to help the UK economy recover. I’d buy Petropavlovsk to get access to the bright gold price outlook, with the Russian miner dealing on a forward price-to-earnings (P/E) ratio of just 11 times.
- I’d happily load up on PayPoint after the stock market crash, too. Like Petropavlovsk this UK share trades on an undemanding P/E ratio, in this case a multiple of 12 times. But the tech titan carries an extra sweetener in the form of its 7%-plus dividend yields. I’m tipping PayPoint’s profits to surge in the years ahead as demand for cutting-edge PayPoint One retail terminals takes off.
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These are just a couple of the top-quality UK shares that are too cheap to miss after the stock market crash. The Motley Fool’s huge library of special reports can help you find even more. And they’re completely free to download, too. So why not take a look? They really could help you get rich and retire early.
