The volatility of global sharemarkets prompted me to ask sharemarket gurus for the stocks on their crash watchlist.
I’m really lucky because every weekday on my Ausbiz program, The Call, I get to pick the brains of the best sharemarket analysts in the country.
Like me, they are all a bit wary of the volatility of global sharemarkets at the moment, and the fact that markets have such a massive run up that we’re due for a big correction. The thing is, they’re not scared of a market crash. In fact, they’re preparing to take advantage of it.
All of them have a watchlist of stocks they plan to buy in a major market pullback. They see market crashes as a great opportunity to buy into quality stocks at a much better price.
Crash watchlist favourites
So I’ve asked these sharemarket gurus for a favourite stock they have on their crash watchlist. Here’s the lowdown from each of them.
CSL
Mathan Somasundarum, Deep Data Analytics, says CSL is the best growth stocks on the Aussie market. We have great health stocks and this is the best of the sector which has delivered for investors over 20 years.
Domino’s Pizza
Domino’s is one of the best run businesses on the ASX. Gaurav Sodhi, Intelligent Investor, says it always looks expensive but management always delivers. So when its price gets crunched periodically when the overall market crashes, it’s a great time to buy.
Washington H Soul Pattison
Scott Phillips, Motley Fool, says if you can pick up this stock on a significant pullback, you’re essentially being handed “free money”. Is a great investment company with strong, consistent returns.
Fisher and Paykel
Mark Moreland, Team Invest, interpreted the brief a little different, selecting a stock he says you would want to hold to weather a pullback storm. He says Fisher & Paykel Healthcare is one of the safest bets on the market and won’t be damaged as the services it provides are always needed. And is always good to pick up on a pullback.
Macquarie Group
Dubbing it “the holy donut”, Andrew Wielandt, DP Wealth Advisory, says with Macquarie’s strong track record of returns on equity and recurring income streams, it would be at the top of his list in a significant pullback.
Commonwealth Bank
Michael Wayne, Medallion Financial, reckons CommBank’s ability to rise from the ashes after the GFC is reason enough, not to mention its high quality.
Goodman Group
Carl Capolingua, Think Markets, says Goodman is a “premium stock” that’s never really cheap. So, when this blue chip is on sale, Carl says he would jump on it.
Long Short Fund LFS
Henry Jennings, Marcus Today, says this listed investment company served him well during the 2020 COVID ‘crash’. If it ain’t broke, right?
Australian Ethical Fund
Claude Walker, A Rich List, says it ticks all the boxes – including the ESG one. He says this is a thematic that is impossible to ignore and AEF provides the perfect exposure for Claude.
Resmed
Rudi Filapek-Vandyke, FNArena, says this stock has a lot of future growth built in, being a healthcare stock. Forget the crash, Rudi would buy Resmed today.
Transurban
Francesco de Stradis, Ord Minnett, says infrastructure stocks are a safe bet when markets looks shaky. For him, Transurban is a high quality defensive portfolio play for a pullback.
Collins Foods
David Novac, Wealthwise Education, reckons Collins Food has been a stellar performer and has an exciting growth outlook, particularly with its international expansion gaining momentum.
Credit Corp
If there is any sort of major pullback, Howard Coleman, Team Invest, says you want to look to companies that will thrive from competitor losses. For him, that’s Credit Corp.
BetaShares Geared Australian Equity Hedge Fund
Gary Glover, Novus Capital, says if markets see an aggressive sell off, you want to be buying the stocks that will outperform on the upside. So he picked GEAR as this fund sits in the high growth category as opposed to defensive.
Xero
Xero is probably the highest quality stock on the ASX for Luke Winchester, Merewether Capital, and as such it comes at a premium price. He says it’s only just the beginning for this software play and would be in his sights come a ‘crash’.
Pro Medicus
Owen Raszkiewicz, Rask Media, says, “Great management, cashed up, scalable and only set to get better.” Currently sitting around $50, Owen says he would love to pick it up around $20.
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