Forget gold and Bitcoin. I’d use the stock market crash to buy cheap shares to get rich

first_imgForget gold and Bitcoin. I’d use the stock market crash to buy cheap shares to get rich There are a wide range of cheap shares available to buy, even after many companies have experienced a rally following the stock market crash.Certainly, there are risks ahead that may account for lower valuations. However, over the long run, the performance of today’s undervalued shares could be relatively strong.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…As such, they may offer a superior risk/reward outlook than popular assets such as gold and Bitcoin.Buying cheap shares after the stock market crashThe idea of buying cheap shares may currently be viewed as less attractive by some investors because of the 2020 stock market crash. Certainly, a recovery has taken place over recent months. However, the potential for stock markets to fall quickly is likely to remain at the forefront of many investors’ minds over the coming months.This may be a reason why some companies have low valuations at the present time. Weak investor sentiment, coupled with uncertain near-term operating conditions, means many sectors contain cheap stocks.In some cases, their low valuations are deserved. But, in others, they have solid financial positions and the potential to expand their competitive advantages over the long term. This may mean that as well as being cheap shares, they have valuations that don’t take into account their future prospects.Long-term recovery potentialToday’s cheap shares could offer sound recovery prospects. The track record of the stock market shows  it’s always experienced cycles. At times, this has meant sharp declines in a short space of time, such as that experienced in the 2020 stock market crash.However, its overall trajectory has been an upward one in recent decades. Therefore, it seems likely stock prices will move higher over the long run. Investors who use a buy-and-hold strategy on a diverse portfolio of stocks should benefit from an upward trend over the coming years.Of course, cheap shares may offer greater scope for capital growth than the rest of the stock market. They may stand to benefit most from factors such as an improving economic outlook and stronger investor sentiment. Therefore, their prospects may be relatively positive as a recovery from the stock market crash likely continues.Avoiding gold and BitcoinCheap shares may offer higher returns than gold or Bitcoin. Both assets have risen in price during the course of 2020, while many stocks have failed to do likewise. In gold’s case, its price may now factor in an uncertain economic environment and low interest rates. As a result, there may be limited scope for further growth.Bitcoin’s value is very difficult to quantify because it lacks fundamentals. Therefore, its current price may lack a margin of safety. Over time, this could lead to relatively disappointing performance versus a portfolio of today’s undervalued stocks. “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. Image source: Getty Images See all posts by Peter Stephens 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. Simply click below to discover how you can take advantage of this. 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. Peter Stephens | Saturday, 12th December, 2020 Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Shares Enter Your Email Addresslast_img read more