Stock market crash 2020: how I’d capitalise on a rare chance to get rich

first_img 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. 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. Image source: Getty Images. 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Despite improving investor sentiment and the prospect of a brighter economic outlook in the long run, some stocks continue to trade at cheap prices.Buying them could prove to be a profitable long-term move. Through building a diverse portfolio of high-quality companies presently experiencing weak operating conditions, it may be possible to generate a surprisingly large nest egg in the coming years.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…Buying high-quality shares after the stock market crashA number of today’s cheap shares are still unpopular many months after the stock market crash because of their weak near-term outlooks. Some sectors, such as energy, financial services and leisure, are facing unprecedented challenges at the present time.In many cases, their potential to grow sales and profit in the short run is very limited. As such, investor sentiment towards them is weak. This has caused their share prices to lag the wider index in many cases.Buying such companies may not seem to be an attractive idea to many investors. However, those companies that have difficult operating conditions, while also having solid financial positions and a competitive advantage, may offer recovery potential over the long run.They may emerge in a stronger position after the stock market crash relative to their weaker sector peers. This may enable them to deliver improving financial performances in the coming years that translates into rising stock prices.Diversification in a stock market recoveryIt’s easy to become complacent as a stock market recovery replaces a stock market crash. This may lead to a portfolio that lacks diversity, in terms of the number and range of companies held within it.However, as this year’s market decline showed, a bull market can quickly turn into a bear market. This can come without any warning. Yes, it may be tempting to only invest in the very best shares available at the present time.But ensuring a portfolio is diversified could be crucial in generating high returns in the coming years. After all, it’s unclear which companies and sectors will deliver growth in what could be a fast-paced and different economic outlook in a post-coronavirus world.A long-term approach to buying cheap sharesOf course, a second stock market crash could occur in the near term. Risks such as Brexit and the coronavirus pandemic may remain in place for some time. They could prompt a period of weaker investor sentiment and a more challenging period for the world economy’s performance.As such, taking a long-term view of any stocks purchased now could be important in generating high returns. The stock market has always posted new record highs after its various declines. Using a buy-and-hold strategy may enable an investor to take advantage of a similar outcome after the 2020 stock market crash. Peter Stephens | Tuesday, 22nd December, 2020 Simply click below to discover how you can take advantage of this. See all posts by Peter Stephens Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997”last_img read more