2 FTSE 100 stocks to buy in a stock market crash

The FTSE 100 The index is now at the pre-epidemic level. As I write this Tuesday afternoon, it is above 7,200. And it is located north of this level for the fourth consecutive session. In this context, it may seem counterintuitive that I am talking about a stock market crash.

Why a stock market crash can happen

But there are good reasons for this. Although we have improved significantly since last year, the risks to the world economy are increasing. Yesterday, China reported no word growth in the third quarter of 2021. It’s the second largest economy in the world and big business for multiple FTSE 100 companies, so it can’t be taken lightly. Recently, Goldman Sachs It also lowered the forecast for the US economy. It is still strong, not strong enough as previously expected. Growth in the UK is not going as well as expected.

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It is possible that growth has just been delayed. But at the same time, the policy stimulus is being withdrawn, which could make it even slower. And inflation is rising, which is reducing the FTSE 100 company’s profits. So, I think we shouldn’t be too far away from the patience of investors if any of these risks suddenly take on a larger size. And that’s why I’m preparing for a stock market crash, if it happens.

Buy FTSE 100 stock at Dips

Note that here I am not talking about a sharp economic downturn as we saw when the epidemic started. This will call for a completely different article. It’s about a market crash Feedback For risky development. Consider, for example, the near fall of China Evergrand Recently, which has led to rapid dynamics of the market. Other similar incidents may occur.

As always, I think the sinking in the stock market is a buying opportunity for me. This belief has been strong since the March 2020 market crash. The stocks I bought then put me in a good position. In fact, loading on some of my existing holdings would be a good idea for me.

Must buy 2 FTSE 100 stocks

One of them is Astrageneca, Whose long-term share price chart is encouraging. This is one for my long-term portfolio, where I look for capital gains over time. It is financially healthy, especially its cancer treatment is regularly accepted and it is also expanding its transmission. It’s a valuable stock with a 42-fold price-to-earnings ratio, but then it was always expensive. I see it only as a premium that investors are willing to pay for shares of a reliable company.

JD Sports Fashion Another FTSE 100 stock that denies gravity. Athleisure is a fast growing market and the company seems to be rapidly establishing its position. Its organic growth has been strong and it is also being acquired. Its share price does not seem to be falling too high or too long. As a result it is also somewhat valuable, with an earnings ratio of about 25 times, although nowhere near AstraZeneca. If I had bought more stock than that, it would have sunk.

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Manika Premsingh owns shares in AstraZeneca and JD Sports Fashion. Motley Flower UK has no position on any of the shares mentioned. The opinions expressed in the companies mentioned in this article may differ from those of the authors and therefore the official recommendations we make on our subscription services such as Share Advisors, Hidden Winners and Pro. Here at The Motley Flower we believe that considering a variety of insights makes us a better investor.

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