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FTSE 100 watch: 3 UK shares I’d buy to TREBLE my money during the new bull market

Royston Wild
·3-min read
The UK national flag in front of Canary Wharf skyscrapers where professionals trade shares for a living.
The UK national flag in front of Canary Wharf skyscrapers where professionals trade shares for a living.

The 2020 stock market crash has provided the best investment opportunity for UK share investors since the 2008 banking crisis. This is why I’ve kept buying for my Stocks and Shares ISA over the past 12 months and plan to keep on investing in 2021.

Stock prices have recovered from the multi-year lows struck in last March. The FTSE 100 for example has leapt from troughs of below 5,000 points to recent levels of 6,600 points. But there’s good reason to expect Britain’s blue-chip index to keep rocketing as the economic recovery continues.

The FTSE 100 surged 85% from the depths of the 2008/09 stock market crash to February 2019. In those 10 years, it struck record highs of 7,877 points too. And the FTSE 250 performed even more strongly during that decade. It more than trebled in value during the period.

Business development to success and FTSE 100 250 350 growth concept.
Business development to success and FTSE 100 250 350 growth concept.

I’m convinced UK share prices will soar like the proverbial phoenix during the 2020s too. Boosted by ultra-loose central bank monetary policy I expect them to rocket as the world economy steadily recovers from the Covid-19 crisis.

I think these 3 UK share prices could soar!

Here are three UK shares I think could at least treble in value during the next 10 years.

#1: Hargreaves Lansdown

The financial services giant was a big winner during the 2010s. It share price rose 770%-plus in the decade to February 2019 as improving economic conditions boosted risk appetite and thus activity on its share dealing platforms.

I think this FTSE 100 firm can expect similarly-strong demand during the 2020s too, as the Covid-19 recovery kicks in and investors continue to seek better returns than that on offer from traditional savings products like Cash ISAs. The general public is a lot more investment savvy than they were 10 years ago too.

#2: DS Smith

An upswing in the global economy boosted sales of DS Smith’s packaging products in the last decade. This helped this UK share soar 900% between February 2009 and February 2019.

A post-coronavirus economic bounce isn’t the only reason why I expect DS Smith to surge during the 2020s either. It’s invested huge amounts in recent years to ride the e-commerce boom. A growth opportunity that looks set to run and run. The FTSE 100 stock’s decision to reduce the use of plastics will enable it to play the sustainability theme to its fullest as well.

#3: Barratt Developments

Like DS Smith, I’m pleased to be owning Barratt Developments shares in my ISA today. Forget about the 217% rise which the FTSE 250 experienced in the decade to February 2019. This UK share rose almost 1,000% over that time. I reckon it’ll surge again in the next 10 years.

The same factors that propelled the housebuilder during the 2010s remain in play today. Low Bank of England interest rates, massive government support through the Help to Buy equity scheme, and fierce mortgage product wars are playing in the background. The woeful shortage of new and existing homes entering the market remains a big problem too, one that should keep profits at Taylor Wimpey and its peers barrelling higher in the years to come.

The post FTSE 100 watch: 3 UK shares I’d buy to TREBLE my money during the new bull market appeared first on The Motley Fool UK.

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Royston Wild owns shares of Barratt Developments and DS Smith. The Motley Fool UK has recommended DS Smith and Hargreaves Lansdown. 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.

Motley Fool UK 2020

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