What I’ll do if the FTSE 100 crashes to 5,000 points

first_img 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. Image source: Getty Images Alan Oscroft | Tuesday, 10th March, 2020 On Monday, the FTSE 100 crashed to a low of 5,891.6 points at one stage, and closed below 6,000 points for the first time since 2016. At the end of the day, London’s top index had fallen 7.7%.Past FTSE 100 crashesBut we’ve had one-day FTSE 100 crashes bigger than that plenty of times, and we’ve always got over them. According to data from Refinitiv, we’ve got to go back as far as 2008 for a worse fall. On 6 October that year, the FTSE 100 lost 7.9%. But since then, the index is up 40% — even after the coronavirus crash.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…As I write on Tuesday morning, the headlines are shouting “Global stocks rebound”, and the Footsie is up 3.8% at 6,195 points. Whenever there’s a panic sell-off of stocks, they always seem to rebound shortly after. It’s been that way for as long as I’ve been following UK shares, and I expect it to continue.Why then do investors do it? If the FTSE 100 has always come back from every fall throughout its history, why do people sell out and then buy back in again? Why not just keep hold of your shares and save two sets of transaction costs?Short-term fearI’ve been asking that question since before I bought my first share, and I still have no good answer. The obvious reason is that investors fear they’ll face further short-term losses unless they sell. But trying to time things so you get out before the bottom, and then buy back in again at a lower price, is almost impossible. So what should we do?For me, the answer is simple. As long as I’m still investing for the long term, I’ll be looking to buy more shares at lower prices. I’ll do my research by examining individual companies and, when I see great ones for sale at bargain prices, I’ll be a buyer.That was my approach before the latest crash, and I see no reason to change it now. We never know when the next stock market slump is going to come along, and it could very well be tomorrow.FTSE 100 crash tomorrow?So what if Tuesday’s gain is just a one-day respite before the FTSE plunges further? What if it crashes as far as 5,000 points and below? We’ve seen levels that low as recently as 2010, and the banking crisis sent the index plummeting below 4,000 at one point.At the time, I couldn’t believe my luck seeing so many shares at super bargain prices. I didn’t have a lot of spare cash at the time. But what I did have went into top dividend shares, and I’ve been enjoying elevated yields from them since. If it happens again I’ll be in a better position to benefit, with a decent chunk of pension cash waiting to be invested.A FTSE fall to 5,000 would be a drop of almost 20%. Just think how wonderful it would be to be able to buy today’s top FTSE 100 stocks in a ‘20% off’ sale. Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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. Our 6 ‘Best Buys Now’ Sharescenter_img Views expressed 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. 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. See all posts by Alan Oscroft Enter Your Email Address What I’ll do if the FTSE 100 crashes to 5,000 points “This Stock Could Be Like Buying Amazon in 1997”last_img read more

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