UK share markets have hardly moved of late as buyer interest remains muted. The FTSE 100, for instance, hasn’t gained any ground since the end of May. This is a shame as I reckon there’s no shortage of terrific stocks waiting to be bought today. And at rock-bottom prices, too.
It’s clear that investors are concerned about another stock market crash. They are right to expect one, too. There are a number of big reasons to believe another market crash could be around the corner. But this doesn’t mean that you and I should hold off on buying UK shares. Regardless of your risk tolerance, today is a brilliant time to buy British stocks.
Go for gold
Those concerned about another stock market crash should strongly consider buying precious metals producers now. There’s a couple on the FTSE 100 for investors to choose from, including gold digger Polymetal International and silver producer Fresnillo.
Precious metals are considered the ultimate asset to hold when market confidence slides. The rocketing prices of gold and silver over the past year, first on stagnating trade talks between the US and China and then the Covid-19 crisis in 2020, illustrate this point perfectly. This has made those Footsie firms some of the best stocks to buy of late as their share prices have exploded.
Rampant demand for precious metals shows no signs of cooling any time soon. Gold has rocketed to new nine-year peaks above $1,865 per ounce this week. Meanwhile silver has scaled levels not seen since 2013, above $22.80 per ounce. I’d argue that metal miners like Fresnillo and Polymetal could be some of the best stocks to buy not just today but for this decade.
More great stocks to buy
There’s no shortage of other FTSE 100 stocks for worried investors to buy today, either. The share prices of utilities companies should also hold up amid a broader stock market crash thanks to their ultra-defensive operations. This includes the likes of power supplier SSE and water provider Severn Trent.
Some of the FTSE 100’s fast-moving consumer goods giants like Reckitt Benckiser and Unilever should also perform better than the broader market in the event of a crash. Their broad suites of foodstuffs and essential household and personal care products make them ideal candidates to weather any financial downturn. And should allow them to avoid the worst of a fresh stock market washout.
Healthcare stocks are other great sector to buy if you fear another stock market crash. GlaxoSmithKline and AstraZeneca can expect their drugs to remain in high demand whatever macroeconomic challenges erupt. Telecoms titan Vodafone can also expect its revenues to continue rolling in given its essential role in keeping the world connected.
I for one don’t fear stock market crashes. History shows us that, over the long term, share investing tends to provide terrific returns for long-term investors, crashes or no crashes. Still, if you’re sitting on the fence and don’t know what to do, then buying the stocks I’ve noted above could be a great way of getting involved without losing any sleep.
