Here’s why I’m buying cheap UK shares ahead of a bull run


British flag, Big Ben, Houses of Parliament and British flag composition

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I’m buying fallen UK shares now as the market is volatile and many stocks have fallen. My belief is that a bull run could be around the corner, which means my holdings could rise if this were to happen.

What’s happening with UK shares

Global markets have been struggling for many months now due to a number of reasons. Geopolitical tensions due to the war in Ukraine is one major factor. Soaring inflation across the globe is another. Here in the UK, rising interest rates and a cost-of-living crisis have also contributed. The combination of these issues have created major investor pessimism and caution among investors.

With that being said, I believe there is a rare opportunity to pick up quality UK shares to boost my holdings for when the markets turn around. However, I do understand that there is no guarantee of a bull run and no one can see into the future.

I’m increasing my position in a stock I already hold, and I’m adding another business to my holdings. Let me break them down.

Primary Health Properties

I already own Primary Health Properties (LSE: PHP) shares but I’m planning on adding some more.

Primary is a real estate investment trust (REIT). It focuses on properties in the healthcare sector such as doctors surgeries.

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From a bullish perspective, Primary is a great stock for passive income. Its dividend yield stands at 7.5% currently. Many of the UK shares I own boost my passive income. However, I do understand that dividends are never guaranteed.

Next, healthcare is a defensive sector, in my opinion, as it is an essential requirement. Furthemore, the demand for primary healthcare in the UK is increasing due to an ageing and rapidly increasing population. This increased demand could boost future earnings and investor returns. It is worth noting that primary healthcare facilities are rented out by the government, which makes the rental income reliable and it usually comes with long-term rental agreements.

One issue I am keeping tabs on is the falling number of NHS staff. Many NHS staff feel underpaid and underappreciated. This has led to many heading abroad for better opportunities. If Primary sees demand for its facilities fall due to inadequate staffing numbers, performance and returns could be impacted.

Primary shares look good value to money right now on a price-to-earnings ratio of 13, hence why I’m adding further shares to my holdings.

Vodafone

Vodafone (LSE: VOD) is one of the largest telecommunications businesses in the world. I’m excited by its fundamentals, as well as growth prospects.

Vodafone shares look dirt-cheap to me right now on a price-to-earnings ratio of just two. In addition to this, a dividend yield of 11% would boost my passive income nicely.

Vodafone shares excite me due to the company’s growth aspirations, especially its foray into the African telecoms market. This is tipped to be a high-growth sector. Vodafone already has a presence here and is looking to consolidate, which could translate into earnings and shareholder returns.

One risk I’m taking into account for Vodafone is its debt-heavy balance sheet. With interest rates rising, debt is harder to service due to increased costs. This debt could impact investor returns and growth plans. It is worth noting that many UK shares are at the mercy of this issue currently.

I’ll be buying Vodafone shares imminently.



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