How I’d invest in UK shares in this stock market recovery


first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Investing money in UK shares could be a logical move because of the prospects for a stock market recovery. Indexes such as the FTSE 100 and FTSE 250 have always bounced back to reach new record highs following their various bear markets. Since they both trade below their all-time highs, there may be scope for further capital gains after the recent stock market rally.Clearly, risks remain elevated at the present time. There’s never any guarantee of making a profit in any stock. However, through buying companies with solid financial positions and low valuations, it may be possible to capitalise on a rising stock market price level.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…Reducing risk when holding UK sharesIt isn’t possible to eliminate risk entirely when investing in UK shares. Buy buying a diverse range of companies with sound financial positions can help to reduce the risk of loss.A diverse portfolio is less likely to be negatively impacted by poor performance from one or more stocks. This means that company-specific risk is lower versus a concentrated portfolio. The economic outlook is unstable at the present time. Meanwhile, any company could run into trouble in the coming months and years. So buying a range of businesses operating in a variety of sectors could be a sound move.So too could buying UK shares with sound finances. The decade-long bull market that ended in 2020 arguably encouraged an increasing amount of risk-taking from companies. As such, some businesses increased their borrowings to maximise returns, and failed to adequately diversify their own operations.Buying stocks with modest debt levels and strong competitive positions in a range of areas could lead to less risk, as well as higher long-term returns.Buying shares with low valuations ahead of a stock market recoveryCompanies that have low valuations may offer greater scope for capital gains in a stock market recovery. At the present time, many UK shares in sectors such as travel & leisure, consumer goods and healthcare trade on valuations that are significantly lower than their long-term historic averages.Certainly, they’ve experienced disruption in many cases. However, they may have the financial means to cope with slow economic growth in the short run. This means they can capitalise on a return to stronger prospects in the long run.A value investing strategy has been relatively successful in the past for some investors. Using the ups-and-downs of the market cycle to buy high-quality UK shares when they trade at low prices seems to be a logical approach to take to maximise returns.With a stock market recovery likely to be ahead, following this strategy could yield high returns in the coming years that may even be ahead of those on offer from the wider market. 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. How I’d invest in UK shares in this stock market recovery Simply click below to discover how you can take advantage of this. 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’ Shares 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. Peter Stephens | Wednesday, 10th February, 2021 “This Stock Could Be Like Buying Amazon in 1997” Image source: Getty Images Enter Your Email Address See all posts by Peter Stephenslast_img read more