3 FTSE 100 Shares to Buy in Case of Market Crash

The current climate of the stock market has created significant concerns for investors. Recent warnings from Deutsche Bank indicate that the market may be headed for a downturn reminiscent of the early 2000s tech bubble. As reported, the FTSE 100 has seen a rise of 19% over the past year, suggesting many stocks are priced at a premium.

Market Predictions and Historical Context

Analysts note parallels between today’s market and the dot-com bubble of 2000. During that time, equities began to decline as technology stocks plummeted. Meanwhile, sectors like consumer staples, utilities, and healthcare performed well.

• March 2000 marked a significant downturn in tech stocks.
• The S&P 500 ended 2000 over 10% lower.
• The FTSE 100 also dropped 14% in that period.

Deutsche Bank emphasizes that prolonged declines in a dominant sector can negatively impact broader market indices. This raises questions about potential vulnerabilities in the current stock market.

Strategies for Investors

Despite these warnings, seasoned investors should remain calm and consider opportunities within the market. Buying shares of quality companies at lower prices during a downturn can offer significant long-term rewards. Historically, markets have rebounded after corrections, making it prudent to identify solid investments that may become undervalued.

Three FTSE 100 Shares to Buy in Case of Market Crash

Here are three FTSE 100 stocks that stand out as potential buys if market conditions worsen:

• Unilever: Currently trading at a P/E ratio of 21, above its 10-year average of 17.
• AstraZeneca: With a projected P/E for 2026 of 25.1, well above its long-term average of 18.7.
• HSBC (LSE:HSBA): Although the price-to-book (P/B) ratio is currently at 1.6, double its 10-year average of 0.8, this bank remains a top investment due to expected profit growth in Asian markets.

HSBC shares have seen a 40% increase over six months and have a dividend yield that recently fell to 4.4%, compared to a historical average of 6.5%. While market volatility may affect its price, the long-term outlook remains positive due to the bank’s robust performance fundamentals.

In conclusion, though the market may soon experience turbulence, there are promising opportunities for investors focused on the long-term potential of quality FTSE 100 shares.