Is it too late for a V-shaped recovery? Here’s how I’d invest in shares now

first_img 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. Image source: Getty Images 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. Will we see a V-shaped recovery in the UK’s economy? The standard measure for the total value of goods produced and services provided in a country during one year is Gross Domestic Product (GDP). And, according to the Office for National Statistics (ONS), monthly GDP grew by around 1.8% in May. But it was still “well below” the levels seen in February, before the lockdowns that shut much of the UK’s economy.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…By May, the level of output hadn’t recovered much from the record falls seen in March and April. Indeed, the change in GDP between February and May was a negative 24.5%.The prospects for a V-shaped recovery now?But it’s early days. For example, non-essential stores weren’t allowed to reopen in England until 15 June. And, so far, we only have GDP figures up to May. Even now, on 15 July, many businesses have yet to get into their stride in a world featuring Covid-19.My guess is that June’s GDP figure will be better, August’s better still, and so on. We may not see a symmetrical V-shaped recovery in the UK’s economy. But I like the idea of it coming out something like a flamboyant tick-shape with a longish tail!And, of course, if one of the many programmes aimed at developing a safe vaccine comes up trumps, it’ll be a major game-changer.But share prices usually act as a leading indicator of what could happen on the ground in the real economy. We’ve already seen quite an uplift in many share prices sensitive to the general economy. For example, at 2,561p, housebuilder Persimmon is almost 70% up from the low it plunged to in March. And, at 4,743p, clothing and accessories retailer Next is about 40% up from its early April low.Forward-looking stock marketsHowever, like many stocks, there are signs the bounce-backs might have stalled for a while. Indeed, there’s still a fair way to go for many shares before they regain the levels seen before the Covid-19 crisis hit the markets.But I reckon the up-moves that occurred from March onwards were predicting the lifting of lockdowns and the re-opening of the economy that we have today – it’s usual for the stock market to look three or more months ahead.The action in the general stock market now may be indicating what’s likely to happen in the real economy in a few months’ time. And it may mean economic activity will have recovered somewhat, but not fully to the levels before coronavirus. If so, that feels right to me.So we could be in for a period of consolidation in the general stock market. And we may see a bedding-in of the ‘new normal’ in the real economy. But I agree with those market commentators who believe the period of consolidation will resolve to the upside in the end.To me then, a pause in the markets now represents a great opportunity to accumulate shares and share-backed investments to hold for the long term. “This Stock Could Be Like Buying Amazon in 1997” 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. Kevin Godbold has no position in any share mentioned. The Motley Fool UK owns shares of Next. 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. See all posts by Kevin Godboldcenter_img Our 6 ‘Best Buys Now’ Shares Kevin Godbold | Wednesday, 15th July, 2020 Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Is it too late for a V-shaped recovery? Here’s how I’d invest in shares nowlast_img

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