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Stock market rally: 4 UK shares I might buy in my Stocks and Shares ISA for 2021

Royston Wild
·3-min read
Private investor buying UK shares at home
Private investor buying UK shares at home

It’s that time when stock pickers start thinking of what to buy for the upcoming year. There are plenty of UK shares that are on my own Stocks and Shares ISA watchlist for 2021. Even if the economic outlook remains cloudy I plan to continue building my shares portfolio with a view to making large long-term gains.

4 UK shares on my ISA radar

Let’s say you’re confident that the global economy will roar back into life in 2021. Which UK shares could rocket in value as confidence flows back into financial markets? Here are four top stocks I think could soar during a new bull market:

#1: St James’s Place

Further signs that the global economy is climbing off its knees should continue to boost investor confidence. And this stands to boost business activity at investment specialists like St James’s Place in 2021. I wouldn’t just buy this particular UK share on the basis of its strong client inflows next year though. Favourable demographic trends like a rapidly-ageing population, allied with the rising complexity of the personal finance market, means that demand for St James’s Place’s services should rise strongly over the long term.

#2: ASOS

There’s a number of reasons I reckon fashion retailer ASOS is a perfect pick for 2021. A successful Covid-19 vaccine means that Britons will be getting out and about again for work and pleasure. And this particular retailer sells clothing across all price points — as well as a broad range of designer labels — to make the most of this opportunity. What’s more, as one of the country’s most popular e-commerce retailers, ASOS is in great shape to exploit the Internet shopping explosion to the max.

Man using credit card to pay online
Man using credit card to pay online

#3: PRS REIT

In recent days I’ve explained why buying PRS REIT is a better idea than investing in buy-to-let. The quick version is that returns from UK shares like this can be higher while these sorts of investments are significantly more hassle free. Latest updates from PRS REIT underlined why I’m a fan of this particular stock too. The business is accelerating construction of its homes to capitalise on the rental boom. And it recently put up its 3,000th home. It hopes to have 5,200 properties on its portfolio by the end of 2021.

#4: AO World

Sales of all sorts of consumer goods would rise quickly at the early stage of the economic recovery. This includes sellers of big-ticket goods like electricals retailer AO World. This particular retail giant has an extra ace up its sleeve, though. Like ASOS, its online-only model means that it has the systems and the structure in place to ride the rocketing e-commerce segment to the max. In fact, the online shopping boom makes AO World a great play not just on 2021 but for the long term.

The post Stock market rally: 4 UK shares I might buy in my Stocks and Shares ISA for 2021 appeared first on The Motley Fool UK.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended ASOS. 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