A Market Crash Is On the Horizon: 3 No-Brainer Stocks to Buy When That Happens
Since March 2009, the U.S. equity market has enjoyed one of the longest bull runs in history. Not even a pandemic could stop the party -- the coronavirus-driven bear market of March 2020 lasted just 33 days. However, this emotion-based rally cannot last indefinitely. Sooner or later, market valuations will have to catch up with fundamentals.
Currently, the S&P 500's price-to-sales (P/S) multiple is 3.2, the highest it has ever reached. At the same time, the investor margin debt level has also reached its highest-ever level of $861 billion, according to the Financial Industry Regulatory Authority. This highlights excessive risk-taking behavior by investors. A significant jump in margin debt was also seen prior to the dot-com bubble of 2000 and the market crash of 2008, implying that we may now be just on the cusp of an impending market crash.
However, retail investors can turn these difficult times into a long-term opportunity by picking up the following fundamentally strong stocks, which most likely will be available at bargain prices during a crash.
Source Fool.com
