Forget gold and Bitcoin. I’d buy these 2 crashing FTSE 100 shares in an ISA to retire early

These two FTSE 100 (INDEXFTSE:UKX) shares could offer high total return potential, in Peter Stephens’ view.

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The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

The FTSE 100’s recent market crash could persuade some investors to consider buying assets, such as gold and Bitcoin. Although they may outperform the FTSE 100 in the near term, buying large-cap shares today could enable you to capitalise on the index’s long-term recovery prospects.

In fact, it’s always recovered from its various crises and bear markets to post new record highs. As such, now could be the right time to buy these two FTSE 100 stocks after their significant declines since the start of the year. They may offer long-term turnaround potential.


Vodafone’s (LSE: VOD) share price has declined by 26% since the start of the year. That’s roughly in line with the FTSE 100’s performance over the same time period. As with many global businesses, the company’s operations are likely to be negatively impacted by coronavirus and the economic disruption it will inevitably cause.

However, Vodafone’s performance prior to the coronavirus outbreak had been relatively strong. For example, in its final quarter 2019 trading update, the business reported improving performances in the UK and Spain. However, its churn rate of customers declined across Europe. But at the same time it also made progress in implementing strategies, such as increasing asset utilisation and simplifying pricing plans.

In the long run, the company’s progress against its growth initiatives could improve its financial prospects. With its shares now having a dividend yield of around 7.7%, they seem to offer a wide margin of safety. As such, now could be a good time to buy a slice of the business. That’s because it offers long-term turnaround potential following what has been a highly challenging first quarter of 2020.


Another FTSE 100 stock that could deliver improving performance after a decline since the start of 2020 is RSA (LSE: RSA). The insurance business has recorded a 30% drop in its shares in 2020. They now trade on a price-to-earnings (P/E) ratio of just 8.8. This indicates they offer a wide margin of safety. They may also have significant scope to deliver an upward rerating over the coming years.

RSA’s results for the 2019 financial year showed progress was made in its underwriting business. This helped to push returns, profits and dividends higher. It was also able to reposition parts of its UK and international operations, which could enhance their long-term prospects.

Clearly, there’s scope for the company’s shares to come under further pressure in the near term. That is due to the ongoing risks facing the world economy. Over the long run, however, its solid strategy and the prospect of an improving outlook for the world economy could lead to improving investor sentiment towards the stock.

With RSA appearing to offer good value for money, it may prove to be a strong performer in the coming years.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

Peter Stephens owns shares of Vodafone. The Motley Fool UK has no position in any of the shares mentioned. 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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