A 30% crash feels catastrophic while it is happening. Screens are red, headlines are alarming, and even seasoned investors start questioning themselves.
But look beyond the panic and you will notice something far more important: every major market crash in history has eventually given way to a powerful recovery.
For long-term investors, a deep selloff isn't the moment to run, it is the moment to act.
If the ASX fell 30%, I wouldn't be trying to guess the bottom or chase speculative rebounds. I would be buying world-class Australian shares with dominant positions, global revenue opportunities, and huge long-term growth runways.
And three that stand out above the rest and are rated as buys by brokers are named below:
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ResMed Inc. (ASX: RMD)
ResMed would remain my first port of call in a major downturn. The company serves a global sleep apnoea and respiratory care market estimated to include more than one billion people, most of whom are still undiagnosed.
As awareness improves and clinical screening expands, ResMed is positioned to capture enormous long-term demand for devices, masks, and its cloud-connected monitoring software.
If a market crash dragged ResMed down significantly, I would see that as an opportunity to buy a global healthcare leader at a rare discount.
Macquarie currently has an outperform rating and $49.20 price target on its shares.
Pro Medicus Ltd (ASX: PME)
If the ASX sold off heavily and high-quality growth stocks were thrown out indiscriminately, Pro Medicus would quickly move near the top of my buy list. This is one of the most profitable and scalable software businesses in the entire country, with gross margins and cash generation that most companies can only dream of.
Its flagship Visage imaging platform continues winning major contracts with leading US hospitals, creating significant long-term revenue visibility. Radiologists, which are in short supply, and health systems rely on fast, reliable, cloud-based imaging, and Visage has become the gold standard in the industry.
Bell Potter recently upgraded its shares to a buy rating with a $320.00 price target.
REA Group Ltd (ASX: REA)
A third outstanding business I would target is REA Group, the dominant force in Australia's online property advertising market.
REA Group has built one of the strongest digital network effects in the country, buyers flock to the platform because it has the most listings, and sellers flock to the platform because it has the most buyers.
This virtuous cycle gives REA Group significant pricing power and the ability to keep expanding into adjacent services such as financial products, landlord tools, and international ventures. Even during softer periods in the housing cycle, REA Group continues to grow revenue through depth products and premium placement offerings.
A major market crash wouldn't change the long-term direction of Australia's property market, nor would it diminish REA's dominance. It would simply make one of Australia's strongest digital businesses cheaper.
Bell Potter has a buy rating and $244.00 price target on the realestate.com.au operator's shares.
