3 reasons to start buying shares this week

A lot of people wait years or decades before putting their investing dream into action – if they ever do it at all. But if I had never invested before and was waiting to start buying shares, I think now could be a great time to do so. That is exactly what I am doing at the moment, although I am not a first-time investor.

Here are three reasons why.

1. Attractive stock market valuations

The key to successful investment is buying the right share at the right price, although another way to think about that is ‘at the right time’. The past several years have been bruising for the economy.

One consequence of that is a lot of shares in high-quality companies have been trading relatively cheaply. A common way of valuing shares is to use a price-to-earnings (P/E) ratio, basically dividing a company’s market capitalisation by its profits. Right now a lot of companies I think are attractive sell at low P/E ratios.

Normally, the lower a P/E ratio is, the cheaper the company’s valuation. Next is on 11, Legal & General is at 6 and Barclays is at 5. That could reflect risks that investors think might hurt future earnings. Indeed, although Barclays has a low P/E ratio, I have no plans to buy any bank shares for my portfolio in the near future as the banking industry continues to face considerable uncertainty in my view.

But the overall picture of the UK stock market is one in which a lot of good companies are selling for attractive prices. That could suddenly change, so I am snapping up bargains right now while I can.

2. Looming Stocks and Shares ISA deadline

Next week is the deadline for current contributions to a Stocks and Shares ISA in the current tax year.

This runs on a ‘use it or lose it’ principle. After the deadline, I will be able to contribute to next year’s ISA. But any unused portion of my GBP20,000 allowance for the present year will expire forever.

That is not necessarily a reason for me to rush out and start buying shares, to be clear. The deadline is for contributions, so I could put money into my ISA before the deadline even if I do not have any immediate plans to buy shares. But with so many bargains on offer at the moment, I am ready to buy.

3.

Taking the long-term view

I believe in long-term investing. But how long is the long term? Basically, the sooner someone starts investing, the longer their overall timeframe as an investor will be.

That can help them benefit from the positive impact time can have on investment results. There is a caveat, which is that even good shares can be too expensive, just as sometimes they might be selling for much less than they are worth. So I would not start buying shares immediately unless I felt I could find shares in great companies selling at attractive prices.

Fortunately, in today’s market, I think there are lots of those about!

cartridge-shop listed on couponmatrix.ukcox-and-cox listed on couponmatrix.ukfurniture-village listed on couponmatrix.ukjollyes listed on couponmatrix.uknet-a-porter listed on couponmatrix.ukthreadbare listed on couponmatrix.uk
cartridge-shop listed on couponmatrix.ukHaving over 20 years’ experience in supplying printers, ink, toner, paper and more for customers worldwide, Cartridge Shop knows better than most how to get the perfect print without breaking the bank. As a bastion for printing supplies, accessories, stationery and plenty else besides, you’ll be how astonished the amount you can save with a Cartridge Shop discount code at your side. So whether you work from home or are looking to refill the office printer, Cartridge Shop is your one and only choice for quick and convenient service.
cox-and-cox listed on couponmatrix.ukSince 2001 Cox & Cox have been championing the cause of high quality, low fuss, furniture and home decorations. Shunning trends and fads in favour of pieces that will stand the test of time, Cox & Cox have moved from strength to strength as they continue to offer you the very best for your home. With Cox & Cox you never have to sacrifice functionality for style, thanks to their eclectic approach to design, which guarantees that their furniture both looks great and fits into your day to day life. Now, with a little help from a Cox and Cox discount code, you can enjoy the quality products and service of Cox & Cox for less – all it takes is a few clicks.
furniture-village listed on couponmatrix.ukTime to kick your feet back, because you’re a few clicks away from everything your home needs. Find comfortable and stylish furniture for less from the experts at Furniture Village. Specialising in high-quality home furnishings and everything from dining tables to bookcases, Furniture Village is a great place to kit out your home. You can make your new furniture even more affordable with a little help from one of our Furniture Village discount codes to sweeten the deal.
jollyes listed on couponmatrix.ukWhy shop around buying accessories and essentials for your beloved pet when you can buy all you need from one website? Jollyes don't just sell all the products either: They've got endless advice on tap to make sure you only buy the very best bedding, toys, chewables, grooming products and food. Use the Jollyes discount code to keep costs as low as possible and you can buy even more of the treats your pet loves the most.
net-a-porter listed on couponmatrix.ukFancy a taste of the luxe life? Get your fix of designer fashion and beauty from NET-A-PORTER, and snap up a steal or two from more than 800 of the world’s most coveted brands. Add a NET-A-PORTER discount code from us to your haul and gift yourself some Gucci, Balenciaga or Isabel Marant for a much more affordable price. With red-hot new arrivals dropping three times a week, NET-A-PORTER will keep those ‘nothing to wear’ worries at bay without blowing your budget.
threadbare listed on couponmatrix.ukWhether you’re searching for a snazzy dress for a summer BBQ or a jacket for the new school term, Threadbare is the place to find top-quality men, women and children’s clothing at affordable prices. Savvy shoppers will find the best Threadbare discount codes and top sale picks on this page, as well as an abundance of discounts for students and key workers. Make Groupon your first port of call and you can expect to save more money on Threadbare clothing for parties, days out and everyday wear, too!