Why the FTSE 100’s market crash could boost your chances of building a £1m ISA

first_imgWhy the FTSE 100’s market crash could boost your chances of building a £1m ISA 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. 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. 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. Simply click below to discover how you can take advantage of this. Peter Stephens has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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. Image source: Getty Images. Our 6 ‘Best Buys Now’ Sharescenter_img See all posts by Peter Stephens The FTSE 100’s recent market crash is likely to have caused many investors to adopt a more cautious attitude when investing through their Stocks and Shares ISA. This is understandable, since the prospects for the world economy are highly uncertain.However, lower valuations are now present across the index following its market crash. This could provide an opportunity for long-term investors to buy high-quality businesses trading at attractive prices. This could increase your chances of building a £1m+ ISA over the coming years.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…Buying opportunities in a market crashThe FTSE 100’s past performance shows it has experienced numerous market declines since its inception. Certainly, the recent market crash was sharper and faster than many of its previous bear markets. But it’s by no means the first time the index has traded at a significantly lower price level compared to its recent highs.The common theme among its previous downturns is that the index has always recovered from them. Therefore, investors who’ve purchased a diverse selection of FTSE 100 companies priced at low levels have generally benefitted from the index’s subsequent recovery. Although a recovery may not seem especially likely at present, in the coming years the index’s history suggests it will take place.Buying shares when they’re at low prices is a better means of making a large profit in the long run than purchasing them at higher prices. So now could be an excellent opportunity to enhance your ISA’s prospects.Short-term challengesOf course, the timescale over which the FTSE 100 delivers a recovery is a known unknown. Past bear markets have varied in terms of their length. That’s because the index sometimes experiencing brief rallies followed by a further market crash.As such, it’s imperative investors adopt a long-term time horizon. This will allow your holdings to overcome the challenges they face in the short run, and deliver on their growth potential. It’ll also provide other investors with the time they need to become increasingly bullish about equities. That could further catalyse the share prices of your holdings.The prospect of short-term economic challenges means buying financially-sound businesses is arguably more important than ever. Checking whether a FTSE 100 company has a solid balance sheet, in terms of modest debt levels and sufficient cash to withstand a period of lower sales, could reduce your risks. It may also lead to higher returns. That’s because you’re likely to limit your overall losses through buying strong businesses that can survive difficult trading conditions.Making a millionClearly, it’s likely to take many years for any investor to generate a £1m ISA. However, the chances of you achieving this goal could be increased through buying cheap FTSE 100 shares in a market crash. Through managing short-term risks, you could experience high returns in the long run that improve your financial prospects. “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address Peter Stephens | Monday, 4th May, 2020 Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!last_img

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