The stock market crash was six months ago but its consequences remain severe. The FTSE 100 and FTSE 250 are still struggling for traction as investors fret over another market meltdown. I certainly wouldn’t rule out another sharp fall in UK share prices as Covid-19-related economic news continues to shock and the hunt for a vaccine goes on.
That’s not to say I’m thinking of selling my own UK shares, though. Quite the opposite. I’m waiting for another stock market crash to buy more quality stocks at rock-bottom prices.
6% dividend yields! I don’t just want to make middling returns from my Stocks and Shares ISA. I plan to make the sort of money that’ll allow me to get rich and retire early. If you stop buying shares then you have no chance of doing this. You’ve gotta be in it to win it, as they say. And buying after stock market crashes boosts your chances of getting seriously rich by snapping up shares at rock-bottom prices and then watching them soar as investor confidence returns.
This is why I’ve continued to snap up UK shares following the 2020 stock market crash (I’ve bought shares in Clipper Logistics and Tritax Big Box REIT, if you’re wondering). And I’ll be hunting for more undervalued stocks if share prices plummet again.
But why wait for another stock market crash? Here are two top UK shares I think are unmissable at current prices:
- I bought those two aforementioned stocks because of the bright outlook for e-commerce in Britain. For the same reason I’d load up on Mondi (LON:MNDI). This FTSE 100 share doesn’t provide warehousing or logistics services like those other companies. But it does provides bespoke packaging that allows retailers to get its product through the post and to its customers. What’s more, Mondi has taken steps like reducing the weight of its product to boost its popularity with online retailers. And it has more tricks up its sleeve. Today this UK share trades on a forward price-to-earnings (P/E) ratio of just 13 times. And this makes it a bargain in my book.
- I’d consider Contour Global to be a bargain right now, too. This power station builder and operator trades on a forward P/E ratio of 15 times, a reading that fails to reflect its exceptional long-term growth prospects. The International Energy Agency reckons global electricity demand will expand 2.1% every year until 2040, so this UK share can expect plenty of business over the next couple of decades of least. Oh, and at current prices, this FTSE 250 stock boasts a mighty 6% dividend yield.
The post Stock market crash: 2 of the best UK shares I’d buy in my ISA to get rich and retire early appeared first on The Motley Fool UK.
Royston Wild owns shares in Clipper Logistics and Tritax Big Box REIT. The Motley Fool UK has recommended Clipper Logistics and Tritax Big Box REIT. 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.
Motley Fool UK 2020