3 stocks i have and i will buy more if the stock market crashes
TSX has been changing things up since mid-July. Speculation for 2022 has turned more positive, but the outlook for 2023 remains the same – a recession could be on the way. It is difficult to predict what effect a recession might have on the stock market. We can see a slow downtrend, which can take months to recover.
Or there could be a sharp drop, as it was in 2020. And if that happens, investors will have a chance to buy their favorite companies at discounted prices. I have already set three goals in case the market crashes.
an insurance leader
Leaders in their respective industries, especially if the industry/companies themselves are relevant to the times and are not expecting any radical changes in the near future, make for a healthy long-term holding. And that’s just one reason why Intact Financial (TSX:IFC) is such a coveted stock. It is a Canadian leader in P&C insurance with a growing market presence in the UK, Ireland and the US
If we consider the performance of the stock over the last decade, especially in comparison to life insurance giants like Manulife, it is easily one of the best picks from the insurance industry. It’s a consistent producer that has delivered returns of over 184% through price appreciation alone over the past decade, and it also offers a healthy dividend at a modest yield (now 2.2%).
A market crash would be a perfect time to buy this great growth stock, which is discounted and possibly undervalued and, at the same time, locked in at a much more attractive yield than it is currently.
Not only is Royal Bank of Canada (TSX: RY) (NYSE: RY) the clear leader of the industry in market cap and many other domains, but it has also been one of the two top-performing stocks in the banking sector. last decade. And the growth potential also comes with a healthy 4.13% yield, which could rise to an even more attractive number during a market crash.
The stock is substantially discounted (16.8%) and significantly undervalued, and a market crash can place a fairly large discount tag on the stock. This will offer good short-term growth (when the stock recovers) and will add to the long-term return potential. Higher returns and lower valuations would also pair favorably with the current stake, adjusting the numbers to more attractive levels.
a gold stock
Franco-Nevada (TSX: FNV) (NYSE: FNV) is a gold royalty and streaming industry giant. It has an impressive portfolio of over 400 gold projects, of which 112 are already in the production stage. And with 250 exploration projects (most of which could turn into healthy gold producers), the company’s future cash flow looks promising.
More than half of the portfolio is focused on gold alone and a significant portion on other precious metals. Geographically, the portfolio largely depends on the US.
Thanks to a royalty-based business model, Franco-Nevada is not as sensitive to price fluctuations as gold miners are – something that is reflected in its price performance. It is also a dividend elite (meaning it has increased its dividend for at least five consecutive years), although the yield is usually very low; This is just one reason to buy it during a downturn in the market. The second reason is the potential for gold stocks during a recession.
All three stocks can give good returns during the recovery phase after the market crash. But it cannot be compared with more volatile securities. The main reason to buy these three in a crash is the long term return potential. Higher yields, lower prices and discounted prices can significantly affect the overall return potential of companies.