Why I’d buy FTSE 100 shares in this stock market rally

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. Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Simply click below to discover how you can take advantage of this. Our 6 ‘Best Buys Now’ Shares Why I’d buy FTSE 100 shares in this stock market rally Despite the recent stock market rally, many FTSE 100 shares continue to trade significantly below their levels from a year ago. The lead index currently trades around 10% down on its pre-coronavirus level. Therefore, there may be opportunities to buy high-quality businesses while they trade at low prices.Furthermore, the index has a long track record of growth. This could mean it offers further opportunities to make a worthwhile total return in the coming years. Certainly after what has been a volatile year for many investors.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…FTSE 100 shares with total return prospectsOf course, identifying which FTSE 100 shares have strong total return prospects over the long run isn’t an exact science. All shares come with a significant amount of risk compared to many other mainstream assets. There’s never any guarantee of any return in future. And there’s also the risk of losing money on an investment in the stock market.However, at the present time, many of the risks facing the world economy may be priced into the valuations of large-cap shares. Certainly, forecasts can prove to be very wrong. However, many leading economists, such as those from the World Bank, estimate that the world economy will deliver strong growth as coronavirus risks recede.This may provide opportunities for today’s undervalued shares to deliver improving financial performances that are reflected positively in their stock prices.Past performance of large-cap sharesThe past performance of FTSE 100 shares is often overlooked by investors when deciding how to apportion their capital. For example, the index currently trades at a similar price to where it was over 20 years ago.However, in that time it’s paid a generous dividend. Furthermore, its performance since inception in 1984 is relatively strong. Its capital growth and reinvested dividends equate to an annualised total return in excess of 8% at its current price level.Although such returns aren’t guaranteed in future, the past performance of the index suggests it can deliver impressive returns. Certainly compared to other popular investment destinations – including other equity indexes.Risks from buying large-cap sharesWhile FTSE 100 shares are deemed risky, they may be more stable than smaller companies. For example, they could have more robust balance sheets due to their size. What’s more, they may be less dependent on a small number of customers for their sales. Given the uncertain economic outlook, they may offer less risk that makes them more attractive on a long-term basis.As such, now could be the right time to start buying FTSE 100 stocks for the long run. Their low valuations, track record of growth and size and scale advantages could allow them to outperform other popular assets in the coming years. Certainly after what has been a very challenging period for many investors. Enter Your Email Address 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. Get the full details on this £5 stock now – while your report is free. Image source: Getty Images. FREE REPORT: Why this £5 stock could be set to surge Peter Stephens | Friday, 5th February, 2021 See all posts by Peter Stephenslast_img

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