Market volatility continues to reign as concerns over the Ukraine crisis simmer. On Monday the FTSE 100 jumped higher early on before retreating in afternoon trade as the political ping pong between Russia and the West entered a new phase.
It seems as if this market volatility could remain in play for some time yet. The VIX index — an instrument that reveals trader expectations for volatility for the next 30 days — is rising yet again. Since the beginning of 2022, it’s increased a whopping 67% as military action in Europe has drawn closer.
Market volatility drags on
A conflict in Ukraine would be a tragedy. And it could have significant geopolitical and macroeconomic consequences. So it’s no surprise that traders and investors are getting hot under the collar. However, as someone with a long-term approach to investing I’m not selling any of my holdings. In fact I’ll look to add to my stocks portfolio even if a stock market crash occurs.
I have a long list of top UK shares I’m seeking to buy for my stocks portfolio. I’m confident that almost all of them will deliver excellent shareholder returns in the years ahead, irrespective of what happens in the short term. These could fall to dirt-cheap prices if stock market volatility continues for whatever reason, providing an excellent dip-buying opportunity for me.
2 UK shares I’m looking to buy
Here are two of the best UK shares I’ll be looking to buy if markets remain volatile.
#1: Redcentric
Tech company Redcentric provides the IT systems that allow workers to do their jobs remotely. I’m therefore expecting profits here to leap as the ‘work from home’ phenomenon continues. A whopping 80% of businesses have now fully embraced flexible working, according to a recent survey, and they’ll have to invest heavily in their systems to make it work effectively.
Redcentric builds networks, security software, cloud platforms and communications systems. It therefore has the potential to win a lot of business as the digital revolution takes off. Despite the threat of huge competition — it will have to paddle very hard to succeed against US giants like Microsoft and IBM, for example — I think it could still deliver exceptional returns given the predicted rate of market growth.
#2: Big Yellow Group
I’d also look to buy Big Yellow Group if fresh market volatility pushes its share price lower. The self-storage company has fallen sharply in value as market conditions have returned to normal levels following an initial Covid-19 trade boost. I think the scale of recent investor selling has been over the top and that the long-term outlook here remains compelling.
There are a number of reasons I expect the self-storage industry to keep growing strongly. The rise of e-commerce — and retailers’ need for more space to keep stock — is one. A healthy housing market is another. Pleasingly Big Yellow plans to continue growing its estate to capitalise on this fertile environment (it opened a new 73,000-square-foot store in West London last month). I’d buy it even though demand for its space could slip if economic conditions worsen.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Microsoft. 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.
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