Stock market rally! 5 reasons why I’m buying UK shares today

first_imgSimply click below to discover how you can take advantage of this. Harvey Jones 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. Enter Your Email Address Image source: Getty Images This one tempts me. Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! Stock market rally! 5 reasons why I’m buying UK shares today See all posts by Harvey Jones Harvey Jones | Thursday, 25th February, 2021 Our 6 ‘Best Buys Now’ Shares 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. The high-calibre small-cap stock flying under the City’s radar FTSE 100 started 2021 with a rally, rewarding investors like me who’d bought UK shares last year. The recovery has stalled but I’m hoping there’s more to come.Fund platform AJ Bell has come up with five reasons why this could be a bumper year for Stocks and Shares ISAs. The time to buy UK shares is before a stock market rally when they’re still cheap. So I reckon there’s a good buying opportunity for me today. Here’s why.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…The UK’s £153bn war chestAs Laith Khalaf, financial analyst at AJ Bell, points out, UK consumers have built up a massive cash war chest while being stuck at home during the pandemic. Households saved £153bn in bank and building society cash accounts in 2020, up from £55bn in 2019, Bank of England (BoE) figures show. Balances are building up during the latest lockdown, mostly in cash, but could fly into UK shares during the upcoming ISA season.Cash offers lower return than UK sharesBoE figures show the average instant access deposit account pays just 0.06%, while Cash ISAs are little better at 0.32%. The BoE expects inflation to hit 2.1% over the next year, which will further erode the buying power of cash. Cash has its place in any savings strategy, but it’s not the way to grow wealth. UK shares are more risky, but offer a substantially better return.Taxes will riseChancellor Rishi Sunak has a fiscal black hole to fill. He may not hike taxes in next week’s Budget, but rises will come. Capital gains tax hikes look baked in and this will make the ISA wrapper even more valuable because it shelters gains from CGT, and dividends from income tax.Economic rebound will boost UK sharesThe BoE expects the UK economy to grow by 14% over the next year, assuming vaccines deliver us from social restrictions. That should spell good news for UK shares, as people start spending and company earnings rebound sharply.The ISA allowance has never been this generousAt launch in 1999, I could invest just £7,000 in a Stocks and Shares ISA. Now the allowance is £20,000. Plus there’s the Junior ISA on top, which gives families another £9,000 per child. As cash slumps and UK shares climb (and pay dividends) more of this should go into the stock market.That’s the bull case for UK shares. Naturally, plenty could go wrong. Mutant variants could undermine vaccine success. Unemployment will rise sharply once furlough ends. When the Chancellor does hike taxes, investors will feel poorer.Any prediction about share price movement should be taken with a pinch of salt. Nobody can consistently second guess markets, There are too many variables. However, history shows us that in the longer run, UK shares go up more than they go down. I’m investing for a minimum five to 10 years, and over such periods, I’m betting equities will beat almost every rival asset class. Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity…You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy.And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline.Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report.But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! 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