Why stock market crash round 2 could be a rare chance to make a million

first_img 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. The prospect of a second stock market crash over the coming months may cause some investors to become worried about their financial prospects. That’s understandable, since this year’s market decline prompted severe falls in the share prices of many companies.However, a market decline can also prove to be a rare buying opportunity. Certainly, it causes short-term paper losses. However, low stock prices can deliver recoveries that produce high capital returns for an investor’s portfolio.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…Therefore, rather than worrying about a potential market downturn, viewing it as an opportunity to lock-in cheap share prices could be a more profitable move.A rare opportunityThis year’s stock market crash was a relatively rare event. The last market downturn of a similar size and scale occurred over a decade ago when the global financial crisis was in full flow. Prior to that, there have been relatively few similar occurrences, with notable bear markets including the dotcom bubble in the early 2000s.Certainly, there have been many market corrections and periods of high volatility throughout the stock market’s history. However, occasions where investors are selling equities en masse to pile into less risky assets due to panic and fear being prevalent are fairly uncommon. Therefore, opportunities to buy high-quality companies at rock-bottom prices are worth grasping for any investor who can look beyond the next few months and instead focus on recovery prospects over the coming years.Recovering from a stock market crashThe track records of indexes such as the FTSE 100 and S&P 500 suggest that buying shares after a stock market crash is a sound move. After all, equity markets have always delivered recoveries following their declines. Sometimes this process has taken a matter of months. But in other cases, it has taken years for the stock market to return to previous highs.Investors can improve their prospects of taking part in a stock market recovery by focusing on high-quality businesses. For example, those companies with low debt and a competitive advantage may be better able to survive weak operating conditions in the short run. They may also be better placed to benefit from an economic recovery. This may lead to higher profits and a rising share price that positively impacts on an investor’s portfolio.Making a millionInvesting in a diverse range of shares after a stock market crash may increase overall returns. This may enable an investor to beat the market’s average return over the long run.Even assuming an investor matches the 8% annual total return that indexes such as the FTSE 100 have delivered could lead to a portfolio valued in excess of a million. For example, investing £100,000 today at an 8% return would produce a seven-figure portfolio within 30 years. Similarly, a £750 monthly investment would lead to a £1m portfolio over the same timeframe.However, it may be possible to obtain a greater return by purchasing high-quality shares at low prices after a stock market crash. This could reduce the amount of time it takes to obtain a portfolio valued at seven figures. “This Stock Could Be Like Buying Amazon in 1997” Image source: Getty Images Why stock market crash round 2 could be a rare chance to make a million Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Peter Stephens | Friday, 6th November, 2020 Enter Your Email Address 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. See all posts by Peter Stephens 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. Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this.last_img


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