Gold and Bitcoin may be more popular assets among investors at the present time. However, their recent price gains and the appeal of British shares may mean that investing your money in the stock market is a superior move. The short-term prospects for cheap UK shares are relatively uncertain. Risks such as Brexit and economic difficulties such as rising unemployment may weigh on the financial performances of many FTSE 100 and FTSE 250 stocks in the coming months. This may negatively impact on investor sentiment, thereby causing share prices to come under pressure following their recent rebound. However, the valuations of many British shares suggest that investors have largely factored in an uncertain outlook. Many high-quality companies currently trade at prices that are lower than they have been for many years. Current prices may undervalue their financial strength and their capacity to mount successful recoveries over the coming years. Therefore, buying a selection of cheap UK shares now may prove to be a profitable move. They may be among those investments that benefit the most from a likely economic recovery in the years ahead. Fiscal policy stimulus and a loose monetary policy may combine to produce improving operating conditions for many businesses that translate into high returns.
Is now the time to buy British?
