Stock market recovery 2020: how you can make a million from buying cheap shares

first_img “This Stock Could Be Like Buying Amazon in 1997” 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! 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. Buying cheap shares today ahead of a potential long-term stock market recovery may not seem to be a sound means of making a million. After all, the recent rebound in stock prices could be curtailed in the short term by risks such as a rise in coronavirus cases.However, the past performance of stock market indices suggests they will record new all-time highs in the coming years. Therefore, at a time when other mainstream assets offer low prospective returns, now could be an opportune time to build a portfolio of cheap shares to increase your chances of making a million.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…A record of stock market recoveryThe past performance of share prices suggests that a stock market recovery is highly likely in the long run. Previous bear markets have been extremely painful for many investors and, in some cases, have lasted for many months, and even years. During them, the chances of a recovery, and a profitable future for investors, seemed slim. However, indexes such as the S&P 500 and FTSE 100 have always recorded a return to growth that pushes them to increasingly high levels.At present, a recovery may seem unlikely. In fact, some investors may feel that stock prices have moved to excessively high levels following the recent rebound. After all, the world economy is likely to experience a period of weaker growth in the coming months.However, by investing today when shares are cheap in some cases, you could benefit from a likely return to a sustained bull market that may catalyse your portfolio’s returns.A margin of safetyOf course, some investors may feel that a better idea is to wait for a stock market recovery to take hold before buying stocks. They may wish to await more benign operating conditions across many sectors, and could focus their capital on lower-risk assets, such as bonds and cash, that promise a higher chance of a return of capital.The problem with that plan is it can mean stock prices move higher and become less attractive, with the scope for making a profit thereby deteriorating. For example, at present, some industries appear to lack wide margins of safety due to the recent market rebound. If an investor waits for other sectors to also rise in value, they may be unable to obtain attractive price levels and sufficiently wide margins of safety to produce high total returns in the long run.Making a millionTherefore, buying cheap shares today and holding them for the long run may be a better idea than opting for lower-risk assets.Building a portfolio of undervalued stocks could enable you to benefit from low prices during a period of difficulty for the world economy. They have the potential to move significantly higher as a stock market recovery takes hold. Over time, they could improve your chances of making a million. Stock market recovery 2020: how you can make a million from buying cheap shares Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. Simply click below to discover how you can take advantage of this. Peter Stephens | Saturday, 15th August, 2020 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.last_img read more