Finding UK shares to buy in a Stocks and Shares ISA is a difficult task at the present time. After all, prospects for the world economy are very uncertain. This could mean a second market crash is ahead, which could produce paper losses in the short term.
However, buying British stocks right now could be a profitable long-term move. They offer low prices, sound growth strategies and solid finances in many cases. As such, ignoring the rising Bitcoin price and instead buying cheap shares could be a shrewd long-term move.
Unearthing UK shares to buy
The best UK shares to buy today could be those businesses likely to survive a period of economic difficulties. The pandemic isn’t yet over, while political risks such as Brexit are on the near-term horizon. Therefore, it would be unsurprising for many British stocks to experience difficult operating conditions in the coming months that negatively impact on their share prices.
As such, analysing company annual reports to find those businesses that have solid balance sheets could be a good move. They tend to have lower debt levels than their peers. They also tend to have wide economic moats that provide a more resilient financial performance. Although they may not be among the cheapest shares around, they could offer less risk and greater long-term growth potential relative to their peers.
A long-term outlook for your Stocks and Shares ISA
The best UK shares to buy today may also have sound strategies that can help them adapt to changing market conditions. For example, retailers with an online presence may outperform their rivals that rely on a store network. Similarly, companies that use a greater amount of technology may be more flexible and could enjoy lower costs over the coming years.
Meanwhile, purchasing undervalued shares could be a sound move. Although it may take time for cheap shares to recover, the past performance of the stock market shows it’s likely to make new record highs over the long run. Investors who can buy high-quality businesses while they trade at low prices could therefore benefit from a likely recovery as the world economy’s outlook gradually improves and investor sentiment does likewise.
Ignoring the Bitcoin price
Of course, some investors may be more attracted to a rising Bitcoin price than finding UK shares to buy today. The virtual currency has more than doubled since its March low.
However, with a lack of infrastructure and regulatory risks facing Bitcoin, now may be a much better time to focus on equity markets. Their low valuations and recovery potential could make a more positive impact on your Stocks and Shares ISA over the long run after what’s been a particulalry challenging 2020 so far.
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.