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, property portal Rightmove, and medical devices manufacturer Smith & Nephew to name a few. With an investing wish-list ready, I’m ready to invest in the stock market crash again, if it happens.
