What stocks to buy when economy crashes?

The best recession stocks include consumer staples, utilities and healthcare companies , all of which produce goods and services that consumers can't do without, no matter how bad the economy gets.

What goes up if stock market crashes?

What goes up if the stock market crashes? There is nothing that will definitely go up if the stock market crashes . Interest bearing investments such as money market funds will continue to earn interest. Bonds may hold their value or increase, and individual bonds including Treasury's will continue to earn interest.

Can I lose my IRA if the market crashes?

A recession could result in a lower IRA balance, but that's not guaranteed to happen . If a recession does negatively impact your IRA, your best bet is to do nothing. It's a good idea to have an emergency fund for surprise expenses that could pop up during a recession, so you can let your IRA recover.

Is the stock market going to crash in 2024?

Stock market investors may be anxious, but as the old saying goes, "There's no need to panic." "While we maintain a positive view on the U.S. stock market in 2024, there are a range of risk factors that could derail the current bull market ," Dilley says.

Which stocks to avoid during recession?

Equity Sectors On the negative side, energy and infrastructure stocks have been the hardest-hit in recent recessions. Companies in these sectors are acutely sensitive to swings in demand. Financials stocks also can suffer during recessions because of a rising default rate and shrinking net interest margins.

How to profit from a market crash?

Another way to make money on a crisis is to bet that one will happen. Short-selling stocks or short equity index futures is one way to profit from a bear market. A short seller borrows shares they don't already own to sell them and, hopefully, repurchase them at a lower price.

Who loses money when the stock market crashes?

Investors who experience a crash can lose money if they sell their positions , instead of waiting it out for a rise. Those who have purchased stock on margin may be forced to liquidate at a loss due to margin calls.

Should you buy when the stock market crashes?

By continuing to buy shares when the market is down, you may lower the overall price you pay per share and position yourself for growth when stocks inevitably recover . But remember: This recovery isn't instant. It may take months or even years.

Should I pull my money out of the stock market in 2024?

Stay the course Pulling your money out of the market when stocks are down will only hurt you in the long run. “In this environment, investors should remain fully diversified across multiple asset classes and regions, and in line with one's financial goals and risk tolerance,” Mukherjee said.

What were the best investments during the Great Depression?

The best performing investments during the Depression were government bonds (many corporations stopped paying interest on their bonds) and annuities .

How do you lose money when the stock market crashes?

Sometimes, however, the economy turns or an asset bubble pops—in which case, markets crash. Investors who experience a crash can lose money if they sell their positions , instead of waiting it out for a rise. Those who have purchased stock on margin may be forced to liquidate at a loss due to margin calls.

What happens to gold when the stock market crashes?

The reason gold tends to be resilient during stock market crashes is that the two are negatively correlated. In other words, when one goes up, the other tends to go down. This makes sense when you think about it. Stocks benefit from economic growth and stability while gold benefits from economic distress and crisis.

5 Top TSX Stocks to Buy if the Market Crashes Again (2024)

Home » Investing » 5 Top TSX Stocks to Buy if the Market Crashes Again

If there is a second round to the market crash, these are the five best long-term TSX stocks to buy when trading at a discount.

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Daniel Da Costa

Daniel joined the Motley Fool Canada team in 2019 with years of experience in banking and investing. Growing up the son of a proprietary stock trader and educator, Daniel’s always found joy in helping Canadians to improve their financial situations. With the Motley Fool, Daniel sees an even more rewarding way to impact Canadians positively. A student and great admirer of Warren Buffett, he’s always looking for investments offering growth at a reasonable price. Outside of finance, Daniel enjoys spending his time with family, sailing, and watching Formula One.

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Published April 29, 2020 8:00 am EDT

5 Top TSX Stocks to Buy if the Market Crashes Again (3)

The market crash that started in late February and accelerated in early March caught a lot of investors off guard. But just as fast as many TSX stocks fell, the top businesses came roaring back, as investors bought up the shares at bargain prices.

This all happened so fast that there’s a good possibility many investors missed the bottom and their chance to lock in high-quality investments at exceptional prices.

It’s not all bad news, however, as many investors and analysts think there is more downside ahead.So, if there is, investors need to learn their lessons from the last time and be ready to buy these businesses as soon as possible, especially since nothing is stopping the market from another rapid rebound.

To help make these investment decisions at the drop of a hat when the price is right, it’s helpful for investors to make a list of their top businesses now.

This way, when the price drops to what you deem to be below fair value, you already know what you’re buying, and you can have confidence in making an investment at those prices.

So, without further ado, here are the top five TSX stocks I’d be ready to buy if the market crashes again.

Railroad TSX stock

Canadian National Railwayis one of the top TSX stocks to own long term. The company is a staple of the Canadian economy and a core portfolio holding you’ll never have to sell.

Because of its prestige, the company is almost always trading at a premium. This makes market crashes some of the best opportunities to increase your position in this top long-term investment.

Convenience store business

Alimentation Couche-Tardis a massive global operator of convenience stores and fuel service stations. This gives Couche-Tard a highly defensive business.

The stock has grown rapidly through both acquisitions and organically. This incredible growth has made Couche-Tard one of the best growth stocks on the TSX.

Telecom TSX stock

BCEis the largest telecom and a great long-term TSX stock to buy in a market crash. Not only is the telecom industry a staple, but it’s in a great long-term growth industry.

With the introduction of 5G right around the corner, many of these stocks are on the cusp of a significant increase to their business. And BCE has built out a tonne of infrastructure in preparation.

With 5G will come the next wave of technology, and it won’t exist without top TSX stocks like BCE.

Renewable energy investment

Another top long-term growth industry is renewable energy, and one of the top stocks in that industry is Northland Power.

Northland’s main renewable generating assets consist of offshore and onshore wind farms as well as solar assets. In total, the company has roughly 2,000 megawatts of generating capacity. However, it has another 1,000 megawatts in development, representing superior long-term growth potential.

TSX gold stock

This time around, it may be prudent to add a top gold business to your portfolio, such as Barrick Gold. Over the past few months, governments around the world have issued tonnes of stimulus, creating the perfect environment for gold prices.

Barrick is the top gold-producing stock on the TSX. Year to date, the stock is already up more than 50%, and there is potential for it to continue to climb much higher.

Bottom line

Knowing what your preferred long-term investments are before the market crashes can give you a significant advantage when you see your target TSX stocks hit a favourable price.

It’s always prudent to do one last check and make sure any new developments aren’t hurting the business. However, as long as it’s a quality long-term investment, and you believe the price is right, then it’s an investment worth making.