The FTSE 100’s market crash of 2020 could lead some investors to refocus their capital on assets such as gold and Bitcoin, rather than stocks. After all, gold and Bitcoin have outperformed the FTSE 100 over recent months, and could continue this trend in the short run.
However, the long-term track record of the FTSE 100 shows that it has always fully recovered from its downturns. As such, buying high-quality stocks while they are priced at low levels today could be a sound strategy.
With that in mind, here are two FTSE 100 shares that could be worth buying today. They could boost your retirement prospects.
FTSE 100 housebuilder Taylor Wimpey
Housebuilder Taylor Wimpey’s (LSE: TW) recent trading update highlighted its financial strength during a challenging period for the wider industry. It has a cash position of around £836m, which suggests that it is in a strong position to overcome what could be an extended period of lower sales.
Demand for new homes may continue to be low over the coming months. With a challenging economic outlook, many prospective house purchasers may decide to postpone their decisions until there is greater clarity surrounding their employment situation. Therefore, even if construction restarts on Taylor Wimpey’s sites, demand for its homes could be weak for a while.
However, over the long run the FTSE 100 company may enjoy stronger operating conditions. The UK’s lack of housing supply, low interest rates and government schemes could sustain rising volumes of new homes in the coming years. As such, with Taylor Wimpey’s share price now trading 23% down on its level of the start of 2020, it could offer good value for money for long-term investors.
Another FTSE 100 share that could be worth buying today for the long run is GSK (LSE: GSK). Its recent update highlighted that assessing the financial impact of coronavirus in the current year is likely to be challenging. However, the company maintained its previous guidance after a strong first quarter that included an impressive growth rate across its portfolio.
GSK is set to experience a significant amount of change over the coming years. Its plans to divest consumer healthcare interests and shift its focus towards being a pharmaceutical business have continued. Yes, this process may cause some uncertainty in the short run. But it could lead to more focused operations that enable the separate entities to become more efficient.
With GSK recently confirming its quarterly dividend, it has a yield of around 4.7%. This suggests that it offers good value for money relative to many of its FTSE 100 index peers. It may also become more popular among income-seeking investors at a time when many large-cap shares are cutting their dividends. This could lead to strong total returns from the stock, which could boost your retirement prospects.
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Peter Stephens owns shares of GlaxoSmithKline and Taylor Wimpey. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. 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.