Stock market crash 2.0: I’m definitely buying these 2 FTSE 100 shares if it happens!
The Motley Fool
Published Jun 30, 2020 14:33
Updated Jun 30, 2020 16:40
Stock market crash 2.0: I’m definitely buying these 2 FTSE 100 shares if it happens!
Even as the FTSE 100 index continues to make gains, talk of another stock market crash are rising. And for good reason. There’s news of a fresh increase in Covid-19 cases in the UK as well as in other countries like China and the US. We don’t fully know yet the economic impact of the coronavirus crisis. And Brexit talks have re-started, which, as we know from past experience, can create much uncertainty.
We investors don’t need to fret, however. If the latest stock market crash is anything to go by, we know that it’s the best time to invest in high-quality FTSE 100 shares. The index alone is up 25% from the lowest point of the crash. Some stocks have seen index-beating gains. I’m definitely going to buy these ones if the crash happens again. Or if I hold them already, then I’ll load up.
Stock market crash buying opportunity One FTSE 100 share I bought in the stock market crash is JD Sports Fashion, whose share price has more than doubled from its lows. It has run into choppy waters in the recent past, make no mistake. The Competition and Markets Authority has prohibited it from going ahead with its Footasylum acquisition from last year. JD is now appealing the decision.
It’s executive chairman, Peter Cowgill, also recently sold off part of his holdings, which may well reflect dimming confidence in JD. The recession is also likely to hurt consumer demand, which could impact JD Sports Fashion’s sales. Further, with social distancing measures still in place, footfall in retail stores will be lower.
But there’s a lot going for it as well. I believe in the company’s long-term story. As we become more health conscious, focus on physical activity will only increase. JD Sports Fashion has a growing international presence, and is poised to benefit from this growing demand. It has also been a profitable business in the past. While it will see a dip, like any other cyclical business, during the recession, I reckon it will be back on its feet soon enough. I think it’s a good stock to hold for the next few years.
More quality options AstraZeneca is another stock I like. But it’s almost never on a downswing except in a wide-spread stock market crash. The FTSE 100 pharmaceutical biggie and Covid-19 vaccine developer has been an investor favourite for a while now. In fact, it’s one of the few stocks whose share price is now actually higher than it was during the pre-crash period. If that isn’t a vote in favour of AZN, I don’t know what is! AZN’s portfolio of successful products form the basis for all the investor interest in it, and the coronavirus vaccine may well be another feather in its cap.
There are many others FTSE 100 stocks I like. These include the pest control and hygiene services provider, Rentokil Initial (LON:RTO), property portal Rightmove, and medical devices manufacturer Smith & Nephew (LON:SN) to name a few. With an investing wish-list ready, I’m ready to invest in the stock market crash again, if it happens.
Get The App
The post Stock market crash 2.0: I’m definitely buying these 2 FTSE 100 shares if it happens! appeared first on The Motley Fool UK.
us better investors.
Motley Fool UK 2020
First published on The Motley Fool
Written By: The Motley Fool
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.