When 2020 comes to a close, there is little question that it will go into the record books as one of the most volatile years on record. The unprecedented uncertainty caused by the coronovirus disease 2019 (COVID-19) epidemic initially decreased to more than a third of broad-based S&P 500 In the case of 33 calendar days. This was followed by an unstoppable rally of about five months which saw it S&P 500 All its disadvantages and technique-heavy repetition Nasdaq composite More than three dozen all-time highs hit off.
However, the past week has been a good reminder that stock market volatility has not been largely put to bed. It took just three trading sessions for the Nasdaq Composite to enter the official correction zone (ie, a decline of at least 10%), and the recent upsurge in volatility has led investors to wonder if we stock market crash 2.0 Can be on the verge of.
Should it be proved, you should be happy. This is because every improvement or accident in history has proved to be an excellent buying opportunity. Eventually, each notable move in the stock market is wiped out by the bull market rally.
Best of all, you don’t have to be rich to participate in wealth. If you have $ 200, there will be no need to pay a $ 200 bill at your disposal or cover an emergency, then you have more than enough to invest in the best stocks during a stock market crash.
Here are the top tier stocks that you want to consider investing in if the market drowns.
Innovative Industrial Properties
Winds should move strongly in the stock market, one of the smartest stocks for investors is a hemp-focused property asset trust Innovative Industrial Properties (NYSE: IIPR), Also known as IIP.
Chances are you wouldn’t think of marijuana stocks as a safe or smart investment opportunity while the stock market is crashing. However, cannabis products act like consumer staples during periods of recession – if there is a decrease in demand, much less. IIP takes this protection a step further, as the company’s business model is built around acquiring and leasing farming and processing assets for extended periods. As of 1 September, there were 62 properties owned in 16 states, with a weighted-average lease length on these assets of 16 years. IIPs should be paid in full on their invested capital in less than 16 years.
In addition, Innovative Industrial Properties is a major player in sell-leaseback agreements. Because marijuana is illegal at the federal level, many pot businesses struggle with access to traditional forms of financing. The IIP makes it easy by purchasing assets in cash from multistate operators (MSOs) and then sending them back to the seller immediately. The MSO needs a lot of cash, while the IIP keeps the tenant closed for long.
IIP offers yields close to 4%, so you’ll struggle to buy more compelling cannabis during a stock market crash.
Another top stock that can help investors build wealth and be bought aggressively during a stock market crash is the cloud-native cyberspace-solution provider Crowdstrike Holdings (NASDAQ: CRWD).
The specialty of Cybercity is that it is a basic need service. Hackers don’t just take a day off as the US economy hits the skids, which means security for cloud networks and in-office networks is more important than ever. This is why CrowdStrike is able to generate 93% of its revenue from high-margin, transparent membership.
The best aspect of CrowdStrike is that its Falcon security platform is scalable and not just a one-size-fits-all solution. This is important because CrowdStrike’s Juciest margins come from existing clients that are expanding their operations and need add-ons to security solutions. Between the first quarter of FY 2018 and the second quarter of FY 2021 (in the 13-quarter), the number of subscription subscribers with four or more cloud module subscriptions increased from 9% to 57%.
Pretty much everything you want is going right. Gross margins are growing higher, existing customers are spending more, and the company’s total membership subscriber numbers have skyrocketed from 450 to 7,230 at the end of fiscal 2017, Q2 2021. Crowdstrike will be a high-growth safety sport. If the stock market declines, then they want themselves.
In keeping with the theme of high-growth stocks, investors would be wise to take their $ 200 and invest it in a companion pet insurance specialist Trupanion (NASDAQ: Trup).
If you want to talk about paw-potential, look no further than the American companion pet industry. Data from the American Pet Products Association, dating back 25 years, showed no year-over-year decline, before remodeling its spending formula this year. This year, Americans are likely to spend $ 99 billion on their “family members”, with more than $ 30 billion going to veterinary care and product sales. Pet healthcare is big business, and Truppian aims to make it more affordable for the nearly 85 million American families who own a pet.
The thing is, only 1% and 2% of all pet owners in North America have health insurance for their companion pet. This suggests an exceptionally long runway for Trupion to grow at double-digit rates while securing new customers for a longer period of time.
As you can imagine, companion pet health insurance is projected to be a competitive location. However, with two decades of providing health insurance for companion pets under its belt, and partnerships with vet offices throughout North America, Trupanian has the tools to double its revenue between 2020 and 2024.
Wheaton Precious Metals
Finally, a stock market crash is the right time to consider buying into a traditional hedge such as a gold and silver streaming company Wheaton Precious Metals (NYSE: WPM).
In the next few years, the area of precious metals should be days. The Federal Reserve has clarified that it does not intend to increase its federal funds for years, suggesting that US Treasury bonds will remain at nominal low yields. When coupled with the supply of a balloon supply through measures of rising debt levels and quantitative easing, the pressure is set for the US dollar and the phase to plunge gold.
While all mining stocks benefit from higher gold and silver prices, streaming companies such as Wheaton Precious Metals see the most immediate improvement in cash flow operations. This is because Wheaton’s sole purpose is to offer capital to other mining companies at a below-market cost in exchange for a percentage of production. Wheaton can then sell whatever it receives under its streaming agreements at market rates, booking the difference as a profit.
Even as the coronavirus virus 2019 (COVID-19) pandemic disrupted the company’s acquisition of precious metals in the second quarter, Wheaton Precious Metals still recorded record revenue in the first half of the year. The company’s average cash cost per ounce of gold (GEO) was just $ 418 in Q2 2020. Based on the current price of the shiny yellow metal, Wheaton is on track for GEO’s cash operating margin of over $ 100,000. .