MENU

Should you fear this stock market crash?

The share market is the best place for wealth creation for most people, however volatility is the price of admission into the share world.

Australian and indeed global markets have been almost worry-free for the past five years, at least since Greece was rescued from its problems in 2011 and 2012.

Central banks and governments have worked exceptionally hard to keep the global economy on track. Asset prices across the board have done very well. Property, shares, bonds and lots of other assets have had an incredible run.

But, it now looks like the tailwinds are about to become headwinds. Interest rates are now heading upwards. Central banks are going to unwind their balance sheets. Debt ratios are at almost all-time highs.

Australian companies are not impervious to these changes. The big banks have all suffered in recent times and the royal commission is also unearthing some troubling practices. The Commonwealth Bank of Australia (ASX: CBA) share price hasn’t done much over the past five years. The Telstra Corporation Ltd (ASX: TLS) share price has fallen substantially over the past few years.

Arguably, the Australian share market isn’t that expensive but if the global share market gets sick Australia could suffer too.

Should we fear this stock market crash? If you own businesses that are going to grow in the long-term then it shouldn’t matter that much. Indeed, a crash could provide an excellent opportunity to buy shares at discounted prices.

Foolish takeaway

Nearly every reader’s portfolio has at least 20 years to go, which is double the length of time from the GFC to today. If a crash were to occur, the market will recover in time.

If a crash does happen I’d want to invest some of my money into one of these top growth stocks.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.