Stock market recovery: how I’d invest £500 per month starting today

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. Stock market recovery: how I’d invest £500 per month starting today “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images. The recent stock market recovery has boosted the portfolios of many investors. For example, the FTSE 100 has made gains of around 10% in the past month.However, the index and many other UK shares continue to trade significantly below their all-time highs. With the stock market having a solid track record of rallying after its declines, there may still be opportunities to benefit from its likely long-term growth.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…Through investing £500 per month, or any other amount, in a diverse range of dividend-paying stocks at low prices, there may be opportunities for an investor to capitalise on the long-term rallies of UK shares across the FTSE 100 and FTSE 250.Investing money in cheap shares after the stock market recoveryThe recent stock market recovery has largely been due to improving investor sentiment. However, investors have maintained a cautious stance on a number of different sectors. They include industries such as banking, energy and travel.Companies in those sectors are struggling at present to deliver improving sales and profit growth. As such, it’s possible to unearth cheap stocks within them, as well as other sectors.Buying cheap shares in high-quality companies can be a profitable long-term move. They may offer scope for capital growth over the long run, while their solid balance sheets and competitive advantages may shield them from economic challenges in the present. As such, investing money in them ahead of a likely long-term stock market recovery could be a shrewd move.Buying dividend stocks for more than a passive incomeFTSE 100 and FTSE 250 shares that could benefit the most in a long-term stock market recovery may include dividend stocks. Currently, many UK shares offer relatively high yields after the stock market crash. However, they could produce more than just a passive income over the coming years.Demand for UK dividend shares may rise in the long run. This is because low interest rates mean other mainstream assets such as cash and bonds provide disappointing returns. Similarly, high house prices mean the yields available on buy-to-let property may be somewhat unappealing.Rising demand for high-yielding UK dividend shares could push their prices higher. And that will allow them to deliver impressive total returns in a long-term stock market recovery.Diversifying across UK sharesOf course, investing money in UK shares ahead of a likely long-term stock market recovery may be a risky move in the short run. Recent gains for the FTSE 100 and FTSE 250 haven’t changed the economic outlook, with Brexit and coronavirus likely to negatively impact on UK shares over the near term.Therefore, investing money in a wide range of stocks could be a shrewd move. It may reduce overall risks and help to provide a more attractive rate of growth in the coming years. 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. 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. Simply click below to discover how you can take advantage of this. Peter Stephens | Wednesday, 25th November, 2020 See all posts by Peter Stephenslast_img read more