No savings at 40? I’d buy dirt-cheap UK shares in this stock market rally

first_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Peter Stephens owns shares of Barclays, GlaxoSmithKline, Taylor Wimpey, and Tesco. The Motley Fool UK has recommended Barclays, GlaxoSmithKline, and Tesco. 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. Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images. No savings at 40? I’d buy dirt-cheap UK shares in this stock market rally Simply click below to discover how you can take advantage of this.center_img See all posts by Peter Stephens Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Shares The current stock market rally has lifted the prices of many FTSE 100 and FTSE 250 shares. However, it’s still possible to buy a wide range of dirt-cheap UK shares that could make strong gains in 2021 and in the coming years.As such, an investor aged 40 who has no retirement savings may be able to generate impressive returns over the long run. In doing so, they could benefit from a likely rise in the stock market to new record highs as it recovers from the 2020 stock market crash.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Identifying the best dirt-cheap UK sharesDeciding which dirt-cheap UK shares to buy in this stock market rally could be a crucial decision in determining an investor’s future financial prospects. Some companies may prove to be value traps. In other words, they trade at cheap prices for good reason.This could be because they have weak financial positions or a poor strategy that’s unable to adapt to fast-paced economic changes. Either way, they may not deliver share price growth in a stock market recovery over the coming years.As such, identifying solid businesses with valuations that don’t take into account their recovery potential could be a shrewd move. For example, companies such as GSK, Barclays, Taylor Wimpey and Tesco currently trade on valuations that appear to be relatively attractive. They’ve all made improvements to their strategies, financial situations and competitive positions over recent years. And that may mean they can outperform the FTSE 100 in the coming years.Beating the FTSE 100 in a stock market rallyDirt-cheap UK shares could outperform the FTSE 100 in a long-term stock market recovery. Investors who’ve purchased high-quality businesses while they trade at low prices have historically generated impressive returns. After all, buying any asset for considerably less than it is worth opens up greater potential for capital appreciation in a subsequent recovery.For example, a diverse portfolio of cheap shares is likely to have had greater capital appreciation potential. Certainly after bear markets such as the 1987 crash, the dot com bubble and the global financial crisis. And, while stock markets have made gains of late, there are opportunities to follow a similar strategy today.Investing today from a standing startInvestors who’ve no retirement savings could benefit from buying dirt-cheap UK shares today. If they’ve a long-term outlook, they may experience gains resulting from a likely long-term stock market rally.Even if they only match the returns of the wider stock market, a regular investment could add up to a surprisingly large portfolio in the long run. For example, investing £250 per month at the same rate as the FTSE 100’s 8% past annual returns would produce a portfolio valued at almost £240,000 within 25 years. This could make a real difference to an investor’s retirement outlook. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Peter Stephens | Tuesday, 8th December, 2020 last_img

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