7 Stocks to Buy Hand Over Fist if the Stock Market Crashes

It's a subject that investors often don't like to talk about, but stock market crashes and corrections are a common and inevitable part of the investing cycle. On Monday, the benchmark S&P 500 suffered its worst single-session decline in months, raising speculation, once again, that a correction or crash may be around the corner.

If we turn to history as a guide, a double-digit percentage decline is likely long overdue. For instance, in each of the previous four instances where the S&P 500's Shiller price-to-earnings (P/E) ratio surpassed 30, the index subsequently declined by at least 20%. The S&P 500's Shiller P/E ratio topped 38 last week -- it's highest reading in almost two decades.

History has also been pretty clear that rebounds from a bear market bottom are never this smooth. In each of the previous eight bear markets prior to the coronavirus crash, there were either one or two double-digit percentage pullbacks within three years of reaching the bottom.

Continue reading


Source Fool.com