Here’s why I’d buy a selection of cheap FTSE 100 shares in the stock market crash

first_img “This Stock Could Be Like Buying Amazon in 1997” Image source: Getty Images Our 6 ‘Best Buys Now’ Shares The outbreak of Covid-19 has rattled stock markets around the world. The UK’s FTSE 100 index is down by over 20% since the start of 2020. As a result, many top UK shares are trading below their average historic valuations. As such, now may be an ideal time for investors to grab a selection of cheap FTSE 100 shares and hold them for the long term.An opportunity to buy FTSE 100 sharesA word of caution though, share prices may still have further to fall. On top of this, a steady flow of economic data is painting a rather ominous picture for the global economy.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…In fact, last week the Bank of England forecast a 30% drop in output in the first half of 2020. That would result in the UK economy entering its deepest recession in 300 years!Analysts diverge over the degree to which they believe output and GDP will fall, but they all agree that the damage will be substantial, albeit short-lived. What’s more, it’s worth noting that the Office for Budget Responsibility predicts a quick bounce-back in the economy as a whole, presuming a three-month lockdown.With that in mind, as long as lockdown restrictions are lifted in the near future, the economic damage looks to be sharp but short-lived. In my view, this scenario offers an opportunity to buy cheap FTSE 100 shares ahead of a stock market recovery.Active vs passiveYou may be thinking that the improving economic outlook presents an ideal opportunity to invest in the entire FTSE 100 index. For example, through a tracker fund. That may be true, but personally, I’m favouring individual shares over index funds at the moment.There are a few reasons for this. Firstly, I believe that through carefully selecting a diversified basket of individual UK shares, you greatly boost your chances of outperforming the index over the long term, receiving attractive returns for doing so.Secondly, in a worse-case scenario, if the recession turns out to be deep and prolonged, buying individual shares (that have the potential to perform well in times of economic downturn) minimises losses over buying an index fund. Think about it, a FTSE 100 tracker fund will closely mirror the performance of the economy. So, when the economy performs poorly, the entire index will suffer too.In it for the long runFinally, I see it as important to stress that if you’re buying cheap FTSE 100 shares today, you must be prepared to be in it for the long run. That way, you’ll ride out the highs and lows of the stock market, avoiding the temptation to time your investments.Moreover, many cheap FTSE 100 shares boast attractive dividend yields. With that in mind, you’ll have ample time to reinvest those dividends and allow your returns to compound over time.If you’re struggling for inspiration, I particularly like the look of GlaxoSmithKline, Vodafone, Taylor Wimpey and Aviva at the moment. I believe these companies have good earnings growth potential and I like their solid market positions.Ultimately, as a result of the stock market crash, I think it’s an ideal time to buy a selection of cheap FTSE 100 shares with bright prospects and strong balance sheets to build wealth over the long term. 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. 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. Matthew Dumigan has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. 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.center_img Simply click below to discover how you can take advantage of this. See all posts by Matthew Dumigan Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Here’s why I’d buy a selection of cheap FTSE 100 shares in the stock market crash Matthew Dumigan | Wednesday, 13th May, 2020 last_img read more