As stock markets crash, I’d buy these 4 FTSE 100 fallers!

It’s been a brutal day for the FTSE 100 index. As I write, the Footsie is down 160.73 factors (-2.2% ) as we speak to commerce at 7,277.36 factors. This newest decline was pushed by huge drops within the US yesterday. The S&P 500 index misplaced 4% of its worth on Wednesday, its largest one-day decline since June 2020. And the tech-heavy Nasdaq Composite index closed down 4.7%. Ouch.

The FTSE 100 has been 2022’s secure haven

Right here’s how the FTSE 100 has carried out towards 4 different main inventory market indices in 2022 and the previous 12 months (sorted by 2022 change).

The FTSE 100 has been a relative secure haven to this point in 2022, in addition to over one 12 months. It’s down below 2% this calendar 12 months, versus a near-28% loss for the Nasdaq Composite index. What’s extra, it’s the one main market index of those 5 to have risen over the previous 12 months. Including dividends of, say, 4% to the index’s 4.7% achieve takes the Footsie’s 12-month return to round 8.7%. To me, that’s fairly spectacular, given the market crashes elsewhere.

Discount looking within the Footsie

Wanting on the FTSE 100’s constituents this afternoon, I see screens of pink. Nearly all shares within the index are down as we speak. In actual fact, solely seven of the 100 Footsie shares are up as we speak, with good points starting from 0.1% to 2.5%. Hardly day for UK shareholders, huh?

However the shedding finish of the FTSE 100 is grabbing my consideration this afternoon. Amongst these losers, 20 shares are down at the very least 3.8% as we speak, whereas seven Footsie shares have misplaced greater than 5% of their worth. And all as a result of traders are apprehensive that the US inventory market is sneezing and, due to this fact, London will catch a nasty chilly.

4 Footsie bargains I’d purchase as we speak

As a contrarian/worth/earnings investor, I’m at all times seeking to purchase into high quality corporations at discounted costs. Listed below are 4 shares I don’t personal which have tumbled in worth as we speak.

Royal Mail Group is the worst performer within the FTSE 100 as we speak, after its share value slumped 12.4%. In the meantime, Unilever shares are down 4.5% as we speak, whereas Diageo inventory is -5.3% and Tesco shares have misplaced 0.9% (having bounced again since this morning’s open).

To sum up, I’d purchase all 4 of those FTSE 100 shares as we speak, each for his or her dividend earnings and future earnings development. Every is a market chief in its explicit discipline, which can supply some safety in these troubled occasions. Then once more, all 4 face related worries: inflation (rising client costs), slowing financial development, recession threat, and many others. But, regardless of these dangers to those corporations’ earnings and their share costs, I’d gladly purchase all 4 shares as we speak!