Stock market crash part 2: Why I’d use it to buy cheap FTSE 100 shares

first_img We’ve had one stock market crash this year, and many fear we could be in for another. While the worst of the pandemic may be over, the economic consequences have mostly been postponed, and could come to bite us after furlough support ends.If you are investing for the long term, a stock market crash is nothing to be afraid of. In fact, you could turn it to your advantage, by taking the opportunity to buy FTSE 100 shares on the cheap, then patiently waiting for them to recover.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…I’m not saying a stock market crash will happen. Nobody can predict the future in that way. At the start of the year, nobody was predicting the kind of crash we saw in March, where the FTSE 100 lost a third of its value.Stock market crash bargainsIt’s the same when markets climb. Few predicted the sharp rebound from 23 March, when the US Federal Reserve and other central bankers flooded markets with liquidity. The one thing you can do is take advantage of a stock market crash after it has happened. I’d do that by going bargain hunting for your favourite FTSE 100 stocks, which will suddenly be going cheap. You can prepare now, by building up a war chest of cash, and adding companies to your watchlist.I don’t think now is the time to take a punt on truly risky areas of the economy, such as airline and cruise stocks. They face a long haul back to profitability. Just look at the havoc closing air corridors has wreaked.Instead, I would target companies with healthy balance sheets and strong cash flows. I would prioritise those that haven’t needed to take advantage of government support schemes during the pandemic, and continued to pay dividends. This should be a sign that they can withstand another downturn. If you can buy them after a stock market crash, all the better.The FTSE 100 will recoverBuying shares after prices have crashed can be nerve wracking, but you have to remember that investing is a long-term game. History shows that stock markets always recover from a correction, provided you give them time.If you would be happy to hold the stocks on your watch list for at least five years, and preferably much longer, you don’t have to worry about the pace of the recovery. Ultimately, it will come.I’m not recommending you only invest if we get a stock market crash. For all I know, the worst may already be over. Markets could start steadily climbing from here. I actually think today is a good opportunity to buy FTSE 100 shares, as the market is down around 20% since its January peak. There are plenty of bargains out there right now.If we do get a stock market crash, then I would accelerate my buying, as there will be even more bargains. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Simply click below to discover how you can take advantage of this. Stock market crash part 2: Why I’d use it to buy cheap FTSE 100 shares Image source: Getty Images Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by Harvey Jones “This Stock Could Be Like Buying Amazon in 1997” Harvey Jones | Sunday, 30th August, 2020 Enter Your Email Addresslast_img read more