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with the FTSE 100 index at record levels and Standard & Poor’s 500 Up 8% since the beginning of the year, some investors are worried about the level of the stock market. Michael Berry is one of them.
According to Barry, higher interest rates are likely to lead to a recession in the United States. In response, the Federal Reserve would cut interest rates, which would lead to the very thing they were trying to tackle – inflation.
I don’t know if this is right or wrong. But I prepare for the possibility of a stock market crash by deciding which stocks I want to buy if prices drop sharply.
coca cola
I was trying to convince myself of that coca cola Stocks are a good investment at today’s prices. But at a P/E ratio of 26, I can’t do that.
Coca-Cola seems like the kind of company that lets its shareholders sleep a good night. It has a strong brand and generates strong and steady cash flows.
It seems that the current share price is on a significant growth. But with modest revenue growth, flat operating margins, and increasing share count, I find this optimistic.
As a result, I don’t think Coca-Cola stock is a worthwhile investment right now. He gave it to me after the stock market crashed, and I’d be into it like a shot.
Experian
Experian It’s another stock I would buy if the market went down significantly. I own this stock in my portfolio and would like to add to my investment.
When I bought my shares, the price was about 22% lower than it is today. And that makes a huge difference.
In my view, Experian is still a great company. It has little competition, provides a valuable product, and the barriers to entry for new competitors are high.
These are great qualities, but they don’t make the stock a buy at any price. For now, I see it as one to watch, not one to buy.
Diageo
Despite 12 turbulent months in the stock market, stocks are in Diageo It has proven resilient. That’s great for shareholders, but less so for investors looking for opportunities.
Diageo’s share price gives the entire company a market capitalization of just under £81 billion. With £17.5 billion in debt and £3 billion in cash, the project is worth around £95 billion.
Against that, it’s £2 billion free cash at 2% annual yield. Even with business growing at 5% annually, this still isn’t attractive to me.
With UK inflation currently at 10%, I would be concerned about buying the stock at today’s prices. A drop in the share price might put Diageo firmly on my list to buy, but a significant drop in the share price.
Visa MasterCard
Finally, I think it’s both visa And Master Card Credit Card They are great works. Together, they dominate their industry where the barriers to entry for competitors are high.
Moreover, these competitive positions do not take much money to maintain. Neither company has high capital expenditures, which results in impressive cash generation.
Visa’s capital expenditures represent about 5% of the cash it generates through its operations. For MasterCard, this figure is 10%.
However, none of this is a big secret, which is why stocks are so expensive today. But in the event of a stock market crash, I would consider buying both.
