2 of the best FTSE 100 shares for me to buy in a stock market crash

The FTSE 100 index saw a sharp fall at the end of last week as concerns over the new virus variant grew. Here are two stocks Manika Premsingh would buy if stock markets were to crash again. 

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.

Since the stock market crash of 2020, I have speculated multiple times about whether another crash is likely. There have been a few occasions when the markets took a wobble, which suggested to me that it may in fact happen. One such recent scare stemmed from the international financial markets. Hong Kong’s stock markets were rocked by the near collapse of indebted Chinese property developer Evergrande. And the rest of the world felt the tremors as well.

The markets took their time, but they came back into balance. And by early November, they were racing ahead again. But once again, we have hit upon a potential obstacle that may well bring about another stock market crash. Coronavirus cases had already been rising in some parts of Europe, leading to increased restrictions. And now cases of the new coronavirus variant are increasing. It could get troublesome if vaccinations are not effective against it. 

Falling FTSE 100 index

It is little wonder then that the FTSE 100 index saw a huge fall of 3.6% at the end of last week. This decline rivals falls seen around the time of the stock market crash last year. Even in today’s trading so far, the stock markets have shown no significant recovery. And if more bad news pours in, I reckon we could see a market crash soon.  

The difference between the last one and the next one that could happen, is that we are better prepared for it. The last crash has shown that a stock market crash could in fact be a great buying opportunity for me. In this context, I often like to use Warren Buffett’s quote “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”.

Two stocks to buy

I would now make a list of all stocks that have run up a lot since the stock market rally that started in November last year. Some of them started rising even earlier. And their rise has been pretty much without breaks. One such FTSE 100 stock I can think of is JD Sports Fashion. The athleisure retailer might have been impacted by the lockdowns, but it has bounced back and so did its share price. In the last three years alone, its share price has almost tripled. It has made some acquisitions and if lockdowns were to happen again, it might not perform as well again. But going by its past performance, I would really like to buy more of the stock, much like I did during the last stock market meltdown. 

I also like the industrial equipment rental company Ashtead, which is presently trading near all-time highs. With a price-to-earnings ratio of 32 times, it is far more expensive than the average FTSE 100 stock. But then its prospects look good too. It could take a hit if coronavirus cases spread much more in the US, where it does most of its business, but over the long term I would still be bullish on the stock. I would buy it now. 

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.

Manika Premsingh owns shares of JD Sports Fashion. 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.

More on Investing Articles

Jumbo jet preparing to take off on a runway at sunset
Investing Articles

When will the Rolls-Royce share price recover?

The Rolls-Royce share price may be down, but cash flows are surging! Zaven Boyrazian explores how long it could be…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

1 dirt-cheap FTSE 100 stock I think could TRIPLE my money!

Demand for lithium is forecast to surge by 42 times, enabling this FTSE 100 stock to potentially supercharge its profits…

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

Should I invest in the FTSE 100 – or try to beat it?

Our writer has the option of investing in a FTSE 100 tracker fund. So why does he choose to buy…

Read more »

Young black woman walking in Central London for shopping
Investing Articles

£1,500 to invest in a Stocks and Shares ISA? Here’s how I’d do it

Our writer has been investing in his Stocks and Shares ISA. Here he details how he could put £1,500 in…

Read more »

One English pound placed on a graph to represent an economic down turn
Investing Articles

2 top FTSE 100 shares I’d buy before the market rebounds!

Christopher Ruane identifies a pair of FTSE 100 shares that have both tumbled in the past year and that he…

Read more »

Business development to success and FTSE 100 250 350 growth concept.
Investing Articles

Here’s why the next bull market may have already begun

The UK stock market has taken the Bank of England's interest rate hike in its stride and green shoots suggest…

Read more »

Gold medal
Investing Articles

No contest! Here’s my stock of the week

An update from this company offered some relief from the economic gloom. It's this Fool's stock of the week.

Read more »

Cogs turning against each other
Investing Articles

Scottish Mortgage shares are back on the rise: is now the time to jump onboard?

Scottish Mortgage shares have risen over 25% in the past 30 days. This Fool takes a look at why and…

Read more »