Stock market crash: 3 steps I’d take to capitalise on a FTSE 100 rebound

first_img See all posts by Peter Stephens Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Stock market crash: 3 steps I’d take to capitalise on a FTSE 100 rebound “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Peter Stephens has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img The FTSE 100’s long-term recovery prospects could be stronger than many investors realise. Certainly, more challenging trading conditions could be ahead that cause a period of uncertainty or even a market crash. But the index’s past performance shows that it has always been able to recover from its very worst periods to post new record highs.Therefore, buying financially sound growth businesses at low prices could be a means of capitalising on the market crash to position your portfolio for a long-term recovery.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Financial strengthThe financial strength of businesses has arguably been overlooked by some investors over recent years. A period of encouraging growth for the world economy has papered over risks such as high debt levels on company balance sheets. However, with GDP growth expected to decline rapidly over the short term, those risks could come to the fore and leave many companies in weak financial positions.As such, it may be of high importance for investors to focus their capital on businesses with low debt levels and access to cash to overcome the difficult operating conditions faced by many sectors. They may have a much higher chance of surviving what looks set to be among the worst recessions faced by the world economy since the 1930s. By surviving the short run, you can potentially benefit from a FTSE 100 recovery over the long term.FTSE 100 growth potentialIdentifying businesses with growth potential at the present time is a relatively challenging task. Some companies, though, have reported that coronavirus has not caused a major decline in their financial performance. As such, they may be able to strengthen their market positions in the coming months to generate higher returns in the long run.Other businesses may be able to capitalise on changing consumer behaviour. For example, online retailers may see a quickening in the pace of consumers shifting their spending away from physical stores and towards the internet. Likewise, companies that can more easily adapt to an evolving economy that is becoming increasingly flexible could be in a stronger position to generate higher levels of profitability in the coming years.Low valuationsAs well as buying financially-sound businesses with growth potential, purchasing cheap stocks could be a sound move. They may offer the greatest recovery potential, since their valuations may already include a margin of safety as investors prepare for a prolonged period of weak economic growth.With the FTSE 100 trading at a relatively low level, and many of its members having valuations that are below their historic averages, now could be the right time to buy a number of stocks for the long run. The FTSE 100’s crash may or may not be over. But its long-term recovery prospects seem to be strong judging by its past performance. Image source: Getty Images. Simply click below to discover how you can take advantage of this. Peter Stephens | Friday, 8th May, 2020 | More on: ^FTSE I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. 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