WTF 2020 Christmas did to the Stock Markets

Forget the Bitcoin price! I'd use the Stock Market recovery to make a thousands or even a million!

The past performance of UK shares suggests that a stock market recovery will take place over the coming years. Even though the stock market has rallied from its 2020 lows, it still trades significantly lower than its all-time highs. Therefore, there may be opportunities to buy high-quality shares at cheap prices.

Doing so could be a more profitable move than buying Bitcoin. The virtual currency's value may have soared of late, but its high risks mean that a portfolio of UK stocks may offer a better chance to make a million.

a stock market recovery has always taken place following even the very worst declines. For example, the FTSE 100 halved as a result of the global financial crisis. It then went on to more than double in the years following the worst of the crisis to reach a new record high. As such, while economic and political instability may be high at the present time, taking a long-term view of a portfolio of shares can lead to impressive returns.

In fact, making a million from UK shares could be a realistic goal for many investors. The stock market has produced an annual total return in the high-single-digits in recent decades. Assuming a similar return in future would mean that a lb100k investment, or lb750 per month, would become worth in excess of lb1m over a 30-year period.

However, with shares such as GSK, Barclays and British American Tobacco trading at valuations that are significantly below their long-term averages, there could be scope to beat the stock market's long-term returns. Cheap shares in high-quality companies have historically offered impressive returns, since they allow an investor to capitalise on a stock market recovery following a market crash.