Stock market crash: I’d buy FTSE 100 bargains today and hold them forever

first_imgSimply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! The recent stock market crash means that many FTSE 100 shares now trade at prices last seen during the financial crisis. In the near term, many sectors and businesses could experience exceptionally difficult trading conditions. Lockdown measures may lead to reduced sales that cause investor sentiment to decline.However, by taking a long-term view of the stock market’s prospects it is possible to capitalise on its low valuations. The FTSE 100 has a track record of recovery and offers the prospect of diversifying across numerous companies. So this could enable you to access a favourable risk/reward opportunity over the coming years.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…Margin of safetyAs mentioned, some FTSE 100 stocks now trade at levels last seen over a decade ago. Investors are understandably concerned about the prospects for the economy during an unprecedented crisis. In the short run, sentiment could worsen should news regarding coronavirus deteriorate, or fail to improve.However, it has always been difficult to ascertain when share prices will reach their lowest ebb during downturns and recessions. Just look at when the FTSE 100 reached its lowest price level in the 1987 crash, during the dotcom crisis and in the financial crisis. It happened when many investors felt things would worsen before they improved from an economic perspective.Therefore, it is difficult to find the best time to buy stocks in the current situation. But through buying high-quality companies today while their prices offer wide margins of safety, you can take advantage of their long-term recovery potential.Recovery potentialJust as it is difficult to know when the FTSE 100’s price level will reach its lowest point, assessing when a long-term recovery will take hold is also challenging. The economy’s performance generally lags investor sentiment. And this means buying stocks when their prospects are uncertain could be a sound move.The FTSE 100 has a solid track record of recovering from its worst bear markets and corrections. Of course, such an outcome cannot be guaranteed in the coming years. But it seems to be highly likely based on past performance. As such, buying companies with solid balance sheets and strong cash flow now, and holding them for the long run, could be a worthwhile strategy.DiversificationBuying and holding a small number of shares may be tempting to many investors. After all, selecting the biggest bargains in the FTSE 100 may prove to be a highly successful strategy. But it also means that risks are high. For example, should one stock in a highly-concentrated portfolio experience poor financial performance it would cause a significant decline in the overall performance of your holdings.Therefore, diversifying across a range of FTSE 100 shares is key. That means buying businesses that operate in varied geographies and industries. Do so and it could improve your risk/reward prospects. It could also improve your financial future, and increase your capacity to capitalise on the low valuations that are present across the FTSE 100. “This Stock Could Be Like Buying Amazon in 1997” Peter Stephens 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. Image source: Getty Images. 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. Our 6 ‘Best Buys Now’ Sharescenter_img Enter Your Email Address Stock market crash: I’d buy FTSE 100 bargains today and hold them forever 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. 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. Peter Stephens | Tuesday, 14th April, 2020 | More on: ^FTSE See all posts by Peter Stephenslast_img read more