October 22, 2020

I’m not waiting for a second stock market crash! 2 cheap UK shares I’d buy in my ISA today

Investor appetite for UK shares remains weak following early 2020’s stock market crash. Sure, the FTSE 100, for example, has regained the psychologically important milestone of 6,000 points in recent days. But Britain’s blue-chip index might struggle to gain more ground as we move into the latter stages of 2020.

Significant economic uncertainty is prompting investors to remain sat on the sidelines as the coronavirus crisis rolls on. But it seems that many are also keeping their chequebooks firmly under lock and key, waiting for another stock market crash to happen and for them to buy UK shares for even less.

It’s quite possible that UK shares could crash again before long. Aside from the threat to the global economy posed by a second wave of infections, signs of growing trade tensions could also prompt investors to charge for the exits.  

Image of person checking their shares portfolio on mobile phone and computer

2 cheap UK shares I’m looking at

I’m not waiting for UK share prices to crash again before investing, though. Firstly, there’s no guarantee that a second stock market crash is forthcoming. Secondly, there are already plenty of dirt-cheap UK shares for eagle-eyed investors to go fishing for.

I’ve continued building my Stocks and Shares ISA in recent weeks. Let me talk you through a couple more cheap UK shares I’m thinking of buying today:

  • Food producer Tate & Lyle is a brilliant buy for a couple of reasons. Its forward price-to-earnings (P/E) ratio of 14 times fails to reflect its exceptional defensive qualities, in my book. It also carries a corresponding 4.2% dividend yield. This FTSE 250 stock has significant balance sheet strength to continue paying above-average dividends beyond this fiscal year too.
  • Bank of Georgia also offers unmissable value of money thanks to its P/E ratio of 7 times for 2020. The Asian Development Bank reckons the Georgian economy will bounce back strongly following the coronavirus-hit 2020. They say it will soar 4.5% in 2021. This might be less impressive than some of the forecasts for some OECD nations. But I reckon Georgia’s a much better bet to enjoy strong growth beyond the near term, and certainly more than the UK where Brexit pressures look set to persist.

Get rich with The Motley Fool

So why wait for another stock market crash? Holding off until the market reaches its very bottom is unlikely to make a big difference to investors’s long-term returns. The important thing is to get the ball in play. You might not have a better value opportunity to buy UK shares.

As investment guru and co-founder of Oaktree Capital Management Howard Marks recently said: “waiting for the bottom is folly… if something’s cheap — based on the relationship between price and intrinsic value — you should buy. And if it cheapens further, you should buy more”.

So don’t wait to strike. The London Stock Exchange is packed with bargain-basement shares like Tate & Lyle that could help you get rich. And The Motley Fool’s epic catalogue of special reports can help you discover even more top-quality UK shares that are too cheap to miss today.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Source Article