Stock market crash: Nick Train is keeping faith with these FTSE shares, as am I

first_img See all posts by Paul Summers Enter Your Email Address Simply click below to discover how you can take advantage of this. 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 Buy quality shares at reasonable prices and hold for the long term. That’s the strategy we endorse at the Motley Fool. We’re in good company. It’s also the game plan followed by one of the UK’s most successful fund managers, Nick Train. Today, I’m looking at three UK stocks Train continues to back, despite so far struggling to recover since March’s coronavirus-related market 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…A Train favouriteIts share price may have performed poorly over the last year or so, but Irn Bru maker AG Barr (LSE: BAG) boasts many great business hallmarks. It has strong brands, a robust balance sheet, and generates higher operating margins compared to peers. It also operates in a defensive sector with loyal customers. No wonder Nick Train remains a fan. Despite not being immune to the coronavirus, Barr has also been performing fairly well in 2020. Revenue of £113m in H1 may have been down 8% on the previous year due to the lockdown, but it was far better than analysts were expecting. The stuttering reopening of bars and cafes in recent weeks means it will take time for sales to really fizz. Then again, the recent heatwave will surely have provided a welcome boost. Indeed, AG Barr could reinstate its dividend in September if management feels another UK lockdown is unlikely.Like Train, I remain confident the stock will recover in time.Temporarily depressedStaying with the drinks theme, FTSE 100 beverage beast Diageo (LSE: DGE) is another of Nick Train’s favourite stocks. It’s the biggest holding in the Lindsell Train UK Equity Fund and the third-largest in both the Lindsell Train Global Equity Fund and Finsbury Growth and Income Trust. That said, recent news from the company has been disappointing. Despite many of us drinking from our homes over lockdown, the company still revealed a bigger-than-expected fall in underlying net sales earlier this month. The near-term outlook is also pretty gloomy. Confirmation that the UK is now in the first recession for 11 years may force some to curtail their spending on premium label booze for a while. Train, however, is staying optimistic. Writing to investors, he said there’s “no doubt that human beings both crave and will return to ‘real’ activities and experiences” once the coronavirus has passed.Since this will inevitably include going back to pubs and clubs en masse, I think now might be an excellent opportunity to snap up Diageo while its share price is depressed.Nick Train luxury buyA third business Nick Train is standing by — and another key holding across funds he manages — is FTSE 100 luxury brand Burberry (LSE: BRBY).Once again, trading through the pandemic hasn’t been great due to store closures and travel restrictions. Although last month’s update included some green shoots of recovery, the share price is understandably still far below where it stood at the start of 2020. As tricky as the current environment is however, I’m confident Burberry can recover. The unstoppable growth in wealth across Asia coupled with the exclusivity of its brand should see to that. In the meantime, the firm is cutting costs where it can and continuing to develop its online offering.While certainly not a reason to buy the shares on its own, I also suspect Burberry is now a prime takeover candidate. “This Stock Could Be Like Buying Amazon in 1997” Stock market crash: Nick Train is keeping faith with these FTSE shares, as am Icenter_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Shares 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. Paul Summers | Monday, 24th August, 2020 | More on: BAG BRBY DGE 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. Paul Summers owns shares of Burberry, AG Barr and Lindsell Train Global Equity Fund. The Motley Fool UK has recommended AG Barr, Burberry, and Diageo. 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.last_img read more

Stock market crash part 2: why it could already be over and what I’d do right now

first_img Our 6 ‘Best Buys Now’ Shares See all posts by Kevin Godbold 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. With the stock market crash of the spring still in investors’ minds, many have wondered if we are about to see a second big plunge. And shares slipped back a fair bit last week. Yet so far, we haven’t seen a retreat on the scale of the spring reversal.But there’s been a lot to worry about, such as the resurgence of Covid-19 infections, further lockdowns, the US presidential election and the ongoing Brexit free trade agreement negotiations with the EU. However, there are some powerful reasons to believe we could already have seen the worst of any second stock market crash in 2020.5G 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…Why a second big stock market crash may not happenIndeed, from where we are now, the flow of news could start to improve. For example, the removal of the uncertainty of the US election is imminent with the voting happening today. And the Brexit free trade agreement outcome will likely be known soon. Meanwhile, the recent measures taken by governments to curb the spread of Covid-19 will probably work quite well. And the graphs showing rates of infection growth could begin to curl over – perhaps that process has already started.I think there are some clues in the markets suggesting a positive move ahead. For example, the CBOE Volatility Index (VIX) is a measure of price fluctuations expected in the S&P 500 index in America. Investors often jokingly refer to the VIX as the fear index. And the predictive nature of the VIX makes it a measure of implied volatility looking about 30 days ahead.So, it works as a rough measure of investor sentiment, and some people use it as a leading indicator. And right now, the interesting thing is the VIX seems to be declining from a peak, suggesting we could see less volatility ahead. Indeed, when the VIX hits its peaks, the general stock market has usually hit its troughs. So, we could see rising share prices ahead.I’d buy cheap shares right nowAnd I think the recent movements in bank shares support that probability. Indeed, banks can work as leading indicators too. I read the investing books published by Peter Lynch and David Dreman and learned that bank shares can be among the first cyclical shares into and out of recessions and downturns. So, I’m encouraged by the strength we’re seeing in stocks such as Lloyds, NatWest, Barclays and HSBC. Indeed, they’ve been surprising the market recently with higher-than-expected earnings.I reckon it’s possible we could be nearer to the beginning of a bull market than we are to a stock market crash. So, I’d use the current window of opportunity — while many shares are depressed — to pick quality stocks for my long-term portfolio.And one approach could be to research cyclical shares that could resurge in a new bull market, such as Aviva, Bellway and Norcros. I’d also consider defensive stocks that can suffer from valuation cycles, such as GlaxoSmithKline, Smith & Nephew and British American Tobacco. Indeed, many shares look like they are out of favour with investors right now and could be selling cheap. Image source: Getty Images “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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!center_img Stock market crash part 2: why it could already be over and what I’d do right now 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. Kevin Godbold has no position in any share mentioned. The Motley Fool UK has recommended Barclays, GlaxoSmithKline, HSBC Holdings, Lloyds Banking Group, and Norcros. 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. Kevin Godbold | Tuesday, 3rd November, 2020 Enter Your Email Address Simply click below to discover how you can take advantage of this.last_img read more