Month: May 2022

Medical and biotechnology ASX shares have suffered greatly the past few months as the prospect of rising interest rates scares people off future-dependent sectors.

But the team at Morgans believes there are still a couple of medical tech stocks that are big enough and profitable enough to be worth buying at the current discount.

Let’s take a look at the pair, as recommended by analyst Andrew Tang:

‘Maintains a dominant position’

The Cochlear Limited (ASX: COH) share price has largely gone sideways over the past 12 months, gaining just 2.3%. Year-to-date is similar, showing a 1.8% rise.

The hearing device company took a hit from the COVID-19 pandemic, which saw fewer patients seeking treatments for non-respiratory issues.

There were also investors who were not fans of Cochlear’s recent acquisition of Oticon Medical.

But, for Tang, there is no reason why Cochlear won’t recover to its pre-COVID glory.

“Cochlear maintains a dominant position in the implantable hearing solutions segment,” he wrote in Morgans Best Ideas for May.

“While we continue to believe a full recovery from COVID-based disruptions still has time to play out, improving demand and strong pipeline — coupled with management’s increasing confidence — suggests an improving earnings profile.”

According to CMC Markets, eight out of 20 analysts recommend Cochlear shares as a buy, while nine rate it as a hold.

Short-term pain for long-term gains

Sleep breathing device maker Resmed CDI (ASX: RMD) has recently seen its stocks wade through far choppier waters than Cochlear.

The volatility is seen in how the share price has lost more than 21% for the year but gained 13% over the past 12 months.

Tang believes the rollercoaster ride will continue for a while yet.

“We believe the next few quarters will likely be volatile, as COVID-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift.”

But the Morgans team still has plenty of conviction in Resmed over the long term.

“Nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.”

Goldman Sachs analysts agree with Morgans, rating Resmed as a buy with a price target of $33.70.

“The broker believes ResMed is still in a stronger position today than 12 months ago and does not believe the near term challenges should be overcapitalised,” reported The Motley Fool’s James Mickleboro last week.

Indeed, 13 out of 23 analysts surveyed in CMC Markets rate the stock as a “strong buy”, with another three labelling it a “moderate buy”.

The post 2 medical tech ASX shares Morgans loves right now appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Monday
• These were the worst performing ASX 200 shares last week
• Why Kogan, Reliance, ResMed, and Sandfire shares are dropping
• ASX 200 midday update: ResMed disappoints, PointsBet rockets higher

Motley Fool contributor Tony Yoo has positions in Cochlear Ltd. and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended Cochlear Ltd. and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form again and dropped into the red. The benchmark index fell 0.4% to 7,316.2 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to rebound on Wednesday following a solid night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 36 points or 0.5% lower this morning. On Wall Street, the Dow Jones rose 0.2%, the S&P 500 climbed 0.5%, and the Nasdaq edged 0.2% higher.

ANZ half year results

All eyes will be on the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price this morning when the banking giant releases its half-year results. According to a note out of Goldman Sachs, its analysts expect ANZ to deliver a pre-provisioning operating profit of $4,270 million and cash earnings of $2,971 million for the half. This will be down 4.2% and 7.4%, respectively, from the second half of FY 2021. As for dividends, the broker has pencilled in a fully franked interim dividend of 72 cents per share for the period.

Oil prices fall

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices tumbled. According to Bloomberg, the WTI crude oil price is down 2.5% to US$102.59 a barrel and the Brent crude oil price has fallen 2.3% to US$105.09 a barrel. This appears to have been driven by demand concerns amid lockdowns in China.

Woolworths shares remain a buy

The Woolworths Group Ltd (ASX: WOW) share price is good value according to the team at Goldman Sachs. In response to the retail giant’s quarterly update, the broker has reiterated its buy rating and lifted its price target to $41.70. Goldman believes “WOW will be a defensive player vs escalating cost inflation.”

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.2% to US$1,867.6 an ounce. The precious metal appears to be in a holding pattern ahead of the US Federal Reserve’s rate decision this week.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Here’s why the Metcash share price just hit a 15-year high
• Here’s how some of the biggest ASX 200 shares are responding to the RBA’s rate rise
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Could Polynovo shares get kicked out of the ASX 200?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re a growth investor with room for some new portfolio additions in May, then it could be worth considering the three ASX growth shares listed below.

Here’s what you need to know about these buy-rated ASX shares:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is this leading appliance manufacturer. Breville has been growing at a solid rate for many years thanks to the success of its product development and its global expansion. Pleasingly, both continue with Breville investing heavily in R&D and entering new markets.

Morgans is a fan of the company and has an add rating and $32.00 price target on its shares. The broker believes Breville is “positioned to deliver double-digit sales growth consistently over the next few years as it grows its market share, notably in geographies into which it has recently launched.”

Lovisa Holdings Limited (ASX: LOV)

Another ASX growth share that is rated highly is Lovisa. It is a fast-fashion jewellery retailer which has been tipped to grow very strongly in the future. This is due to the popularity of its offering and management’s bold global expansion plans.

Morgans is also very positive on Lovisa and has an add rating and $24.00 price target on its shares. It is very bullish on the company’s global expansion plans and believes “LOV may just prove to be one of the biggest success stories in Australian retail.”

Megaport Ltd (ASX: MP1)

A final growth share to look at is the global leading provider of elastic interconnection services. Megaport’s global platform allows users to rapidly connect their network to other services across the Megaport Network, which can then be directly controlled by customers via mobile devices, their computer, or its open API. This is proving to be a very popular solution given the structural shift to the cloud.

Goldman Sachs is a big fan of Megaport and has a buy rating and $13.10 price target on its shares. While the broker was disappointed with Megaport’s recent quarterly update, it notes that “the long term opportunity for MP1 is unchanged, given (1) the growth in cloud/multi-cloud demand; (2) efficiency benefits from network ‘softwarisation’; and (3) MP1’s product lead.”

The post 3 stellar ASX growth shares analysts are tipping as buys this month appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares in April
• 2 excellent ASX shares to buy and hold for a decade
• Is this opportunity knocking? 3 ASX shares hitting 52-week lows today
• 48% fall: Fund names 3 ASX shares to take off after heavy crash
• Top broker tips Megaport share price to rebound 45%

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended Lovisa Holdings Ltd and MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Yesterday we looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with brokers right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

Fortescue Metals Group Limited (ASX: FMG)

According to a note out of Goldman Sachs, its analysts have retained their sell rating and trimmed their price target on this mining giant’s shares to $14.90. Although Fortescue outperformed Goldman’s estimates with its record third quarter shipments, it wasn’t enough for a change of rating. The broker continues to have issues with its valuation and believes its premium to fellow large cap miners is unwarranted considering the lack of diversification and risks around future capital spend and returns. The Fortescue share price was trading at $20.61 on Tuesday.

Kogan.com Ltd (ASX: KGN)

A note out of Credit Suisse reveals that its analysts have downgraded this ecommerce company’s shares to an underperform rating and slashed the price target on them to $3.75. Credit Suisse was disappointed with Kogan’s quarterly update and notes that its sales fell well short of its expectations during the period. And with inventory and costs high, the broker has concerns over its profits and also its cash flows. The Kogan share price has now dropped below this price target to $3.73.

Zip Co Ltd (ASX: ZIP)

Analysts at UBS have retained their sell rating and cut their price target on this buy now pay later provider’s shares to a lowly 90 cents. This follows the release of Zip’s third quarter update. While that update revealed solid growth in absolute terms, it was still well short of UBS’ second half growth forecasts. In addition, the broker highlights Zip’s softening transaction frequency and suspects that its active customers includes inactive customers that will soon drop off. The Zip share price was trading at $1.16 on Tuesday afternoon.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• Why is the Fortescue share price down 5% on Tuesday?
• Here’s how some of the biggest ASX 200 shares are responding to the RBA’s rate rise
• Why Block, Domain, Metcash, and Zip shares are pushing higher
• Back in the green: Zip share price launches 6% on Tuesday
• How did the Fortescue share price stack up in April?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Kogan.com ltd and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Lake Resources N.L. (ASX: LKE) share price struggled on the ASX today.

The lithium explorer’s shares fell by 6.68% to $1.745. In contrast, the S&P/ASX 200 Index (ASX: XJO) slid 0.42% in today’s trade.

Let’s take a look at what is happening at Lake Resources.

Lithium explorer falls

The Lake Resources share price has sunk to its lowest level since late March today. For perspective, the S&P/ASX 200 Materials (ASX: XMJ) index fell by more than 1% today while the shares of ASX lithium miner Core Lithium (ASX: CXO) also closed 4.53% lower.

In today’s news, Lake advised the market company secretary Garry Gill has resigned as joint company secretary. Peter Neilsen will remain in his role as company secretary and chief financial officer.

Commenting on the news, the company said:

The board expresses its appreciation to Mr Gill for his services to the company and wishes him well for the future.

Lake Resources is exploring lithium from multiple projects including the flagship Kachi Project in Argentina. Lake aims to produce 100,000 tonnes of lithium by 2030. Lithium is a critical component of Electric Vehicle (EV) batteries.

The lithium carbonate price has fallen 6.85% in a month to 462,500 yuan per tonne, Trading Economics data shows.

Lake Resources share price snapshot

The Lake Resources share price has soared 463% in the past 12 months and is up 73% this year to date.

In contrast, the benchmark index has returned about 4% in the past year.

Lake Resources has a market capitalisation of about $2.3 billion based on the current share price.

The post Why did the Lake Resources share price tumble 7% today? appeared first on The Motley Fool Australia.

More reading

• Why is the Lake Resources share price beating its sector today?
• What are the 10 biggest ASX shares in the lithium space
• Here are the top 10 ASX shares today
• Lake Resources share price spikes 14% as lithium prices begin to ease
• Analysts name 3 top ASX lithium stocks to buy now

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Telstra Corporation Ltd (ASX: TLS) share price zipped higher over the past month following positive investor sentiment.

In April, the telco provider’s shares have gained around 2%. By compassion, the S&P/ASX 200 Index (ASX: XJO) fell almost 1% over the same period.

It’s worth noting that Telstra shares reached a 2-month high of $4.06 on 21 April before treading lower.

At Tuesday’s market close, the company’s shares finished 0.25% lower to $3.98.

Below, we take a closer look at what fuelled the Telstra share price.

What’s drove Telstra shares higher last month?

While the company’s kept relatively quiet on the news front during April, investors continued to buy up Telstra shares.

The positive outlook on the company is stemming from the successful implementation of its transformational T22 strategy. Management sees this as a way of simplifying and digitising the business.

However, the upcoming T25 strategy which builds on the T22 strategy is posed for driving growth. Its aim is to further support dividends through a number of cost-cutting and value-adding initiatives.

In addition, the appointment of new CEO, Ms Vicki Brady appeared to excite investors.

Ms Brady is scheduled to take over the helm from outgoing CEO Andy Penn on 1 September.

They both have been working together to ensure a smooth handover.

Lastly, Telstra has been busy conducting its planned $1.35 billion buyback program. Currently, management has spent $1.15 billion so far following the partial sales of the Towers transaction.

It is expected that the sale will be completed by the end of the financial year.

Telstra share price summary

In 2022, the Telstra share price has lost around 5%, despite reaching pre-pandemic levels.

If the company’s share price can push above $4.31 this year, it will be at a multi-year high from 2017.

Telstra commands a market capitalisation of around $46.42 billion, making it the 11th largest company on the ASX.

The post Why did the Telstra share price beat the ASX 200 in April? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Rates are up! Expert names 2 ASX shares for a global downturn
• The ASX 200 shares that fund managers are buying and dumping
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Best ASX shares to buy in May 2022

Motley Fool contributor Aaron Teboneras has positions in Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Today, the S&P/ASX 200 Index (ASX: XJO) slipped into the red following the Reserve Bank of Australia’s decision to lift the cash rate for the first time in 11 years. At the end of the session, the benchmark index finished 0.42% lower at 7,316.2 points.

Investors have been holding tight in preparation for central banks to increase interest rates amid high inflation prints. Today, the RBA handed down the much-awaited decision to boost the cash rate by 0.25%. Interestingly, tech and healthcare shares enjoyed some reinvigoration despite the expectation of further rate increases throughout the year.

Meanwhile, the other end of the market consisted of companies in the materials and real estate sectors. Notably, the real estate sector was the worst performer today as debts look set to become more expensive.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Stanmore Resources Ltd (ASX: SMR) was the biggest gainer today. Shares in the coal producer rallied 5.40% as some forecasts suggest wholesale electricity could double over the next year. Find out more about Stanmore Resources here.

Sliding in as the second biggest gainer today was Magellan Financial Group Ltd (ASX: MFG). The fund manager posted a gain of 5.40% amid reports that the company is moving on from Hamish Doughlass’s tenure on the board. Uncover the latest Magellan Financial Group details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Stanmore Resources Ltd (ASX: SMR)	$2.55	8.05%
Magellan Financial Group Ltd (ASX: MFG)	$17.17	5.4%
Block Inc CDI (ASX: SQ2)	$149.26	5.11%
GQG Partners Inc (ASX: GQG)	$1.45	4.32%
Lovisa Holdings Ltd (ASX: LOV)	$17.13	4.07%
Coronado Global Resources Inc (ASX: CRN)	$2.38	3.93%
Pro Medicus Ltd (ASX: PME)	$45.24	3.36%
Yancoal Australia Ltd (ASX: YAL)	$5.30	3.31%
Domain Holdings Australia Ltd (ASX: DHG)	$3.53	3.22%
Idp Education Ltd (ASX: IEL)	$27.14	2.92%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Metcash share price just hit a 15-year high
• Here’s how some of the biggest ASX 200 shares are responding to the RBA’s rate rise
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Could Polynovo shares get kicked out of the ASX 200?
• RBA increases cash rate by 25bps and warns of more hikes

Motley Fool contributor Mitchell Lawler has positions in Block, Inc. and Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., Idp Education Pty Ltd, and Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Block, Inc. and Pro Medicus Ltd. The Motley Fool Australia has recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Core Lithium Ltd (ASX: CXO) share price dumped its early gains on Tuesday before plunging into the red.

The lithium developer released seemingly good news of its Finniss Project this morning, sending its share price up to 3% higher in early trade.

However, come Tuesday’s close, the Core Lithium share price finished at $1.265, 4.53% lower than its previous close.

Today was also a rough day for the broader market.

The S&P/ASX 200 Index (ASX: XJO) and the All Ordinaries Index (ASX: XAO) both slipped lower. They fell 0.42% and 0.47% respectively as the cash rate was increased for the first time in years.

Let’s take a closer look at today’s news from Core Lithium.

What went wrong for the Core Lithium share price?

The Core Lithium share price’s initial gains turned sour on Tuesday. The stock’s rollercoaster performance followed the release of good news about the Finniss Lithium Project.

The Northern Territory’s Minister of Environment, Eva Lawler, has given the thumbs up to an underground mine at the project.

Now, the company will work to submit a mine management plan to the Department of Industry, Tourism, and Trade.

Core Lithium expects the first ore from the project to be on board ships at the end of 2022.

However, Core Lithium wasn’t the only ASX lithium share to trade in the red today.

It was joined by the likes of Argosy Minerals Limited (ASX: AGY), Mineral Resources Ltd (ASX: MIN), and Liontown Resources Ltd (ASX: LTR).

The post Core Lithium share price gives up early gains to close 5% lower appeared first on The Motley Fool Australia.

More reading

• Core Lithium share price charges higher amid ‘exciting milestone’
• Core Lithium share price slips despite positive news
• Core Lithium share price charges higher amid quarterly update
• Why is it such a mixed day of trade for ASX lithium stocks?
• The Core Lithium share price is sinking 6% today. Why?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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After gaining an impressive 25% in March, the Ethereum (CRYPTO: ETH) price went the other direction in April.

Ethereum started the month worth US$3,282. By 30 April, it was trading for US$2,827, down 14%.

What impacted the Ethereum price in April?

The world’s number two crypto was hit by the same headwinds that saw risk assets, like high growth tech shares, tumble in April.

Atop fears of slowing economic growth out of China, where authorities continue to lockdown millions of residents in efforts to eliminate COVID-19, crypto investors have been keeping a wary eye on the rate hike plans of global central banks.

Higher interest rates increase the cost of holding money. And with the US Federal Reserve and other leading central banks like the RBA poised for a series of rate increases, the tech-heavy Nasdaq shed 14% last month. The same losses, you’ll notice, posted by the Ethereum price.

And Ethereum was far from the only crypto that fell hard in April. Bitcoin (CRYPTO: BTC) lost 17% over the 30 days.

Some analysts are predicting a bounce for the Ethereum price as its blockchain moves from a proof-of-work protocol to a proof-of-stake protocol. A move that will greatly reduce costs and its staggering energy use and carbon emissions. But little fresh news about the so-called Merge hit the crypto markets in April.

Volatility continues

Demonstrating the continuing volatility among even the top cryptos, the Ethereum price reached lows of US$2,727 during April while peaking at US$3,574, according to data from CoinMarketCap. That’s a range of some 31%.

At the current price of US$2,842, Ethereum is down 42% from its 16 November all-time highs. It now has a market cap of US$343.6 billion.

The post Here’s how the Ethereum price stacked up in April appeared first on The Motley Fool Australia.

More reading

• Can cryptocurrency bounce back in May?
• Why Bitcoin, Ethereum, and Coinbase Jumped Today
• Why Shiba Inu, Ethereum, and Dogecoin are sinking today
• Crypto king Bitcoin to be dethroned by this hot rival: experts
• Bitcoin, Ethereum, and Cardano are turning it around today. Here’s why

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The stock market could very well crash in the coming months. This might sound like bad news if you have a lot of your hard-earned money invested and you’re afraid to see your portfolio balance fall. 

But a market crash isn’t something to fear. In fact, there are three big reasons you shouldn’t be concerned as long as you’ve got investments you believe in.

1. Market crashes are inevitable

Worrying about a stock market crash is like worrying about a rainstorm. It’s not worth it because a crash is as inevitable as a rainy day. Crashes have always been part of the natural economic cycle and if you are prepared, you can easily weather the storm.

But just because you don’t need to worry about rain doesn’t mean you shouldn’t have an umbrella. In this case, your umbrella is a portfolio strong enough to make it through unscathed. Doing this involves smart strategies including investing for the long term and building a portfolio made up of a diverse mix of assets. 

2. Recoveries always follow crashes

A market crash can send your investments plummeting, but just as there have always been crashes, recoveries have always inevitably followed like a rainbow after a storm.

The recovery may take months, or even years. But over time, the market has consistently gone up and never experienced a downturn that didn’t eventually reverse itself. 

If you have investments you believe in, just hold them through the crash and wait for the price of your shares to bounce back. Any losses will be temporary and only on paper, and you should end up earning positive returns over the long haul if you’ve invested wisely.  

3. Crashes present buying opportunities

Lasty, rather than worrying about a market crash, you should view it as an opportunity. Contrary to what your instincts may tell you, it’s a good idea to invest more when a crash has occurred. You can buy shares of good companies when they are on sale and benefit from the discount. 

You don’t necessarily want to try to time the market to buy at rock-bottom prices since you can’t always tell exactly when the crash will end and recovery will begin. So if you consistently buy stock as prices fall, it’s inevitable that you’ll buy some shares at an opportune time and see more profit because of it. 

What should you do instead of worrying?

If you want to make it through a crash unscathed, there are a few key things you need to do.

First and foremost, don’t invest in anything that you wouldn’t be prepared to hold through a downturn. If you’re trying to make a quick buck with a short-term investment and you don’t trust that the company can survive tough economic times, you could suffer permanent losses if you have bad timing and buy before a crash occurs.

Second, aim to have some cash available to invest when a crash happens so you have the opportunity to take advantage of discounts in companies you believe in. 

And third, never panic-sell because doing so just locks in losses. Avoid checking your portfolio obsessively when times are tough and have enough confidence in your investment thesis to sit back and wait for the turnaround to come and your investments to rebound. 

If you do these three things, a market crash shouldn’t be cause for any concern. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 reasons not to worry about a stock market crash appeared first on The Motley Fool Australia.

More reading

• Here’s why the Metcash share price just hit a 15-year high
• Hawsons Iron share price subjects investors to wild ride on Tuesday
• Why is the Fortescue share price down 5% on Tuesday?
• Here’s how some of the biggest ASX 200 shares are responding to the RBA’s rate rise
• What’s driving the Graincorp share price to all-time highs?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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