Why I’m searching for stocks to buy as share markets sink!

Market turbulence might be picking up, but I’m not nervous. I actually think now is a great time to build a list of stocks that I want to buy.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Front view photo of a woman using digital tablet in London

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Now might seem like a bad time for UK investors to search for stocks to buy. Speculation of a fresh stock market crash is gathering pace as investor confidence has plunged again.

The FTSE 100 is now down 1% since the start of 2023 following a fresh sell-off, as the chart below shows. Meanwhile, the UK-focused FTSE 250 has lost a whopping 8% of its value in the year to date. Rising fears about interest rates mean investing conditions could get worse before they get better.


Created with TradingView

Should you invest £1,000 in Bunzl Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bunzl Plc made the list?

See the 6 stocks

But as an active investor myself I’m not selling up and running for cover. No, I’m actually building a list of top shares I’d like to buy in case financial markets plunge further.

Why are markets sinking?

Chill winds of worry are swirling about high interest rates settling in and there is set to be little respite from the sell-off. Investors have again been reminded by central bank policymakers in the US that the screws may have to be tightened on monetary policy again, and kept there for some time, to stop inflation whipping higher again.

Susannah Streeter, head of money and markets at Hargreaves Lansdown

Bond and stock markets have sold off sharply again as concerns over the global economy have spiked. Oil prices have also collapsed back below $90 per barrel too following the drop in investor confidence.

More strong jobs figures from the US have reignited concerns that inflation may not fall as quickly as hoped. In this scenario the Federal Reserve may not cut rates as rapidly in 2024 as was being predicted, which would in turn put the cosh on corporate profitability.

Investing like Warren Buffett

Clearly these issues could have a significant impact on investor returns in the short-to-medium term. But they’re not discouraging me from continuing to buy UK shares. This is because I buy stocks based on what profits I can expect to make over the long haul (that is, a decade or longer). And right now there are many great companies trading on ultra-low valuations.

Past performance isn’t always a reliable indicator for the future. But in terms of stock markets, history shows us that company profits have always bounced back following macroeconomic and geopolitical crises, pulling share prices higher again.

At times like these I’m reminded of billionaire investor Warren Buffett‘s wise words to “be fearful when others are greedy, and greedy when others are fearful.” He’s built his fortune by buying quality stocks when they plummet in value and watching them recover when economic conditions improve.

It’s why I’ve bought shares in FTSE 100 companies including Diageo, Ashtead Group, Bunzl and Legal & General in 2023. And it’s why I plan to continue adding to my Stocks and Shares ISA in the months ahead. I hope I could follow Mr Buffett (and the UK’s hundreds of ISA millionaires) and make big long-term returns.

But this isn’t the only opportunity that’s caught my attention this week. Here are:

5 Shares for the Future of Energy

Investors who don’t own energy shares need to see this now.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — sees 2 key reasons why energy is set to soar.

While sanctions slam Russian supplies, nations are also racing to achieve net zero emissions, he says. Mark believes 5 companies in particular are poised for spectacular profits.

Open this new report5 Shares for the Future of Energy — and discover:

  • Britain’s Energy Fort Knox, now controlling 30% of UK energy storage
  • How to potentially get paid by the weather
  • Electric Vehicles’ secret backdoor opportunity
  • One dead simple stock for the new nuclear boom

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation now

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has positions in Ashtead Group Plc, Bunzl plc, Diageo Plc, and Legal & General Group Plc. The Motley Fool UK has recommended Diageo and Hargreaves Lansdown. 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.

More on Investing Articles

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

Here’s the Tesco share price forecast for the next 12 months!

Tesco's valuation has dropped to multi-year lows after recent share price weakness. Is now the time to consider buying the…

Read more »

Illustration of flames over a black background
Investing Articles

Just released: March’s higher-risk, high-reward stock recommendation [PREMIUM PICKS]

Fire ideas will tend to be more adventurous and are designed for investors who can stomach a bit more volatility.

Read more »

Investing Articles

I asked ChatGPT for the best FTSE 100 investment trust to buy… here’s what it said

There aren't many FTSE 100-listed investment trusts and according to ChatGPT there’s only one winner. Dr James Fox explores.

Read more »

Investing Articles

How much should investors put in an ISA to achieve the average UK wage in passive income?

Millions of Britons use the Stocks and Shares ISA as a vehicle to build wealth, but a successful investor can…

Read more »

Investing Articles

2 cheap FTSE dividend stocks to consider buying for an ISA

The deadline for using up the Stocks and Shares ISA allowance is almost upon us. Paul Summers has spotted two…

Read more »

Investing Articles

£20k in a Stocks and Shares ISA? Here’s how an investor could target £1,342 in passive income each month

Christopher Ruane explains how a long-term approach to investing a Stocks and Shares ISA could generate a four-figure monthly income.

Read more »

Shot of an young Indian businesswoman sitting alone in the office at night and using a digital tablet
Investing Articles

Millions are missing out on ISA account benefits! Here’s what I’m doing now

Swathes of people are missing the chance to supercharge their returns with a Stocks and Shares or Lifetime ISA account.…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Investing Articles

Here’s my plan to survive and thrive in a stock market correction

A falling stock market can be an opportunity, but investors need a plan. Stephen Wright shares his strategy for taking…

Read more »