Bitcoin and gold could drop like a stone in 2021. I’d buy these 7 UK shares instead

first_imgSimply click below to discover how you can take advantage of this. Kevin Godbold | Saturday, 19th December, 2020 See all posts by Kevin Godbold 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997”center_img I’d buy UK shares today. Even though some investors who were early to Bitcoin made fortunes by buying and owning the crypto. Indeed, there are people around today claiming that Bitcoin made them millionaires.And it’s easy to see how that happened when, just 10 years ago, a Bitcoin was near $1. Today, it’s close to $20,000. Meanwhile, the price of gold has also been strong since finding a low near the beginning of the century.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…Why I’d shun Bitcoin and gold for UK sharesGold has a reputation for providing investors with a safe haven in troubled economic times. And some argue Bitcoin could be behaving like a gold standard to cryptocurrencies. But whatever the truth about that, much of what drives the price of Bitcoin and gold is pure speculation.And in their elevated positions, both Bitcoin and gold have a lot of clear blue sky beneath them. It doesn’t take a big stretch to imagine economic times becoming less troubled. And if that happens, we could see Bitcoin and gold losing their updrafts and floating back down again.For example, an end to the Brexit saga is in sight. And it’s a similar story with the coronavirus pandemic. If the economic news flow from the real world gains positive traction, shares could blossom while alternative assets such as Bitcoin and gold wilt.But even in the worst of economic times, I’m inclined to invest in shares and share-backed vehicles such as funds and trackers. For me, equities are a superior asset class. I think of them as active assets because the underlying businesses can build value while I hold shares. And there’s no such advantage from holding Bitcoin and gold because they are inactive, inert assets.I’d target quality businessesUnderlying operational progress in a business can push a share price higher. And that makes sense because the valuation has to accommodate rising profits, cash balances and other internal assets owned by the business. But that kind of value-driving engine is missing from Bitcoin and gold.So, I’d invest in UK shares backed by strong, high-quality businesses. And I tend to find those at the defensive end of the defensive/cyclical continuum. To me, those businesses with cyclical operations don’t often make good long-term investments. I’d describe them as poor-quality enterprises. So, I’m wary of stocks in sectors such as banking, oil production & exploration, mining, retail, hospitality, travel and others.However, I’m keen on sectors such as utilities, energy supply, fast-moving-consumer goods, food supply, healthcare and others. And, right now, I’d aim to own shares such as AG Barr, Britvic, Computacenter, Cranswick, National Grid, Nichols and PZ Cussons. I’d buy each share and hold it for decades while reinvesting dividends to compound my long-term gains. Bitcoin and gold could drop like a stone in 2021. I’d buy these 7 UK shares instead Source: Getty Images Kevin Godbold has no position in any share mentioned. The Motley Fool UK has recommended AG Barr, Britvic, Nichols, and PZ Cussons. 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. 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. Our 6 ‘Best Buys Now’ Shareslast_img

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