2020 provides an unmissable buying opportunity for investors to load up on dirt-cheap UK shares. Market confidence remains rock-bottom following the stock market crash of late February and early March. And, as a result, there’s an abundance of five-star stocks that have failed to recover from being shockingly oversold earlier in the year.
The FTSE 100 and FTSE 250 have actually retreated further over the summer as the Covid-19 crisis rolled on. It’s likely that more meaty declines in UK share prices could be around the corner too, as Brexit fears, rising trade tensions elsewhere, and political uncertainty in the US keeps everyone on edge.
But I wouldn’t wait for the possibility of fresh stock market weakness before piling in. Investors brave enough to buy UK shares after stock market crashes tend to make a killing as asset prices steadily recover. Even if they fail to buy in at the very bottom of the market tends. You can also find yourself wasting time and losing money by delaying before you strike.
2 cheap UK shares I’m looking at
Besides, there are stacks of top-quality UK shares that are already too good to miss at current prices. Here are two I’m thinking of buying for my own Stocks and Shares ISA following the stock market crash:
- Chemring Group trades on a rock-bottom forward price-to-earnings growth (PEG) reading of 0.9 today, making it far too cheap to miss. It’s a reading that fails to reflect the robust long-term outlook for the broader defence market. And it’s one that betrays the stunning rate at which demand for its flares and sensors are growing. I’m confident its strong relationships with the Ministry of Defence and US Department of Defense will keep sales growing at a stunning rate too.
- Buying shares in platinum group metal (PGM) producers like Sylvania Platinum remains a top idea as well. This particular UK share offers brilliant value through its low forward price-to-earnings (P/E) ratio of 3.5 times. Rocketing precious metal prices drove Sylvania’s share price to 12-year highs. And a worsening supply and demand picture means platinum values should keep on soaring too (the World Platinum Investment Council expects the platinum market to swing to a deficit of 336,000 ounces this year).
Making a million with The Motley Fool
Studies show that long-term UK share investors make an average annual return of 8-10% a year. But buying after stock market crashes can allow you to make even better returns. It’s how the hundreds of Stocks and Shares ISA investors made millions after the 2008/2009 banking crisis.
This is why I believe 2020 represents an unmissable investment opportunity for UK share investors. Chemring and Sylvania are just a couple of quality stocks that are too cheap to miss today. The Motley Fool’s enormous catalogue of special reports can help you find even more. So do some research and get investing today, I say. You could even make a million.
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.