Market crashes aren't rare events; they're part of the normal investing cycle.
History shows that 10% pullbacks happen almost yearly, 20% corrections every few years, and deeper 35%+ drawdowns roughly once a decade.
Yet, while the headlines often fuel panic, these moments can also present disciplined investors with some of the best opportunities of their lives. In today's world, where markets can swing wildly in response to a single social media post, having a pre-prepared shopping list matters more than ever.
If the ASX were to tumble tomorrow, these are three shares I'd be ready to buy — strong, high-quality names I believe could come out of any downturn even stronger.
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1. Dividend deliverer
Washington H. Soul Pattinson and Co Ltd (ASX: SOL) is one of Australia's most trusted dividend payers and a proven compounder through every market cycle. Founded in 1872, it's evolved into a diversified investment house with holdings that span telecommunications, resources, property, agriculture, and financial services. That diversification helps stabilise returns when markets turn volatile, exactly the kind of defensive balance that can shine during a downturn.
The company has lifted its annual dividend every year since 1998 (the longest streak on the ASX) and has delivered an average total shareholder return of 13.7% per year over the past 25 years. With a flexible investment mandate and exposure to uncorrelated sectors, Soul Patts has the balance sheet strength and discipline to keep compounding through challenging conditions. It remains a cornerstone choice for long-term investors who value both income reliability and capital growth potential.
2. Growth generator
TechnologyOne Ltd (ASX: TNE) has become one of the ASX's most consistent long-term performers. The enterprise software provider has delivered more than two decades of uninterrupted profit growth and continues to expand its footprint across Australia, New Zealand, and the UK.
TechnologyOne's deep relationships with government, education, and financial clients create high switching costs, while new products like SaaS+ and DXP offer fresh revenue streams. Management believes the company can double in size every five years — an ambitious but credible goal given its proven execution and expanding global opportunity.
3. Diversification play
While listed on the ASX, the iShares S&P 500 ETF (ASX: IVV) offers exposure to America's most powerful companies — names like Apple, Microsoft, Nvidia, Amazon, and Alphabet. These global innovators have consistently shaped industries and driven productivity worldwide.
As Warren Buffett said, "Despite some severe interruptions, our country's economic progress has been breathtaking. Never bet against America." Over time, that progress has translated into average annual returns of roughly 10% from the S&P 500.
Investing in IVV during a market downturn can be a disciplined way to build wealth. It allows investors to buy great businesses at discounted prices and benefit from decades of compounding.
Foolish Bottomline
No one can predict when the next market crash will occur, but it will — eventually. The key is to stay calm, stay liquid, and stay ready.
By maintaining a short list of dependable, high-quality investments, including dividend payers, growth innovators, and diversified ETFs, investors can turn fear into opportunity. Time and again, market declines have paved the way for the next chapter of progress and wealth creation.
