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A inventory market crash is my favorite time to begin shopping for FTSE 100 shares. Why? As a result of when everybody else is panicking, terrific high-quality firms usually find yourself buying and selling at substantial reductions. And because the saying goes, buyers must “purchase low and promote excessive”.
That’s why when the inventory market finally crashes once more, I received’t be losing this distinctive probability to snap up some unbelievable filth low-cost bargains. However this additionally raises an attention-grabbing and tough query: ought to I solely ever purchase shares throughout a market downturn?
That’s a very urgent query proper now, given rising international tensions, a looming vitality disaster, and substantial commerce disruptions. So ought to I watch for catastrophe to strike?
No. I’m not ready
Whereas it could appear counterintuitive, ready for the inventory market to implode can really hurt a portfolio’s efficiency. The issue is that inventory market crashes are notoriously onerous to precisely predict, with numerous failed makes an attempt from even the neatest minds in finance.
Even in at this time’s present financial and geopolitical panorama, a crash is way from assured.
The battle in Iran is clearly regarding, however a profitable peace settlement might swiftly finish these issues. And even when the warfare drags on, the next vitality shock might show short-lived or much less extreme than anticipated as different nations ramp up oil & gasoline manufacturing to reap the benefits of the provision hole.
That’s why within the midst of all of the latest chaos, I’ve been drip feeding cash into the inventory market all through the final two months. And whereas I’ve principally centered on US shares, a number of FTSE 100 shares are actually wanting relatively promising.
What shares are on my radar?
I’m bullish on fairly a couple of FTSE 100 shares in 2026. And amongst my favorite picks stands the Warhammer creator, Video games Workshop (LSE:GAW).
With the launch of its eleventh Version of Warhammer 40,000 just some months away, the corporate seems to be on monitor for an additional gangbuster yr of income and revenue development for its core miniature enterprise.
Crucially, this timing additionally seems to line up properly with the deliberate completion of its new Manufacturing unit 4 facility, increasing its current manufacturing capability. And with a fifth web site already secured for future development, the enterprise seems to be getting ready to scale its operations considerably within the coming years.
As an current shareholder, this operational growth has me excited. Nonetheless, regardless that I’m bullish, there are nonetheless some essential near-term dangers to observe.
What ought to buyers watch?
It’s not simply oil & gasoline that’s been disrupted because of the Iran warfare. World provide of petrochemical plastics, like those that Video games Workshop makes use of to fabricate its miniatures, has additionally been hit, possible translating into greater uncooked materials prices for the enterprise.
Fortunately, Video games Workshop instructions distinctive pricing energy, granting flexibility to go this value alongside to prospects. However in an surroundings of rising vitality and meals costs, that energy is likely to be put to the take a look at, with volumes doubtlessly taking a success.
My contrarian view is that demand for the eleventh Version launch field will offset this headwind. However clearly, that’s not a assured consequence.
However, with a formidable product line-up, incoming manufacturing growth, and an enviable monitor report, this can be a threat I really feel is likely to be value taking. That’s why I’m severely contemplating snapping up extra shares at this time.
