The transfer decrease we’ve seen within the FTSE 100 over the previous week can’t at the moment be termed a market crash. A swift drop of over 20% is often the benchmark used for one thing to be known as a crash. But no person is aware of if the market will proceed to fall within the coming weeks. So in preparation, right here’s my present watchlist of concepts I’ll snap up if shares preserve tumbling.

Ready patiently

Marks and Spencer (LSE:MKS) is a inventory I’ve preferred for some time however, sadly, it had already rallied exhausting by the point I actually regarded into it. It has over doubled in worth over the previous two years, and is up 51% over the past 12 months.

It has been on my watchlist particularly if we see the share price fall. It’s nonetheless buying and selling above 300p, but when it will get nearer to 250p then I’d be trying to purchase. My essential purpose for desirous to get in is because of the robust transformation the corporate has seen on over the previous few years. It has efficiently managed to pivot each the Meals and Clothes & House divisions. The 2023 report spoke of how each areas have delivered 12 consecutive quarters of gross sales development.

This has finally fed down to the underside line, with revenue earlier than tax up 58% versus 2022. Although that is nice, I really feel buyers possibly obtained a bit over-excited in current months, pushing the share price too excessive, too quick. There’s additionally the continuing threat of weaker demand from shoppers on the excessive road who’re nonetheless feeling the cost-of-living pinch.

Due to this fact, I’m being affected person and ready to see if the share price strikes decrease to provide me a pleasant low cost to purchase at.

Pessimistic proper now

On the opposite finish of the spectrum, I’ve obtained Burberry (LSE:BRBY) on my watchlist. Provided that the inventory’s down 67% over the previous 12 months, you would possibly assume I’m loopy.

Nevertheless, after I wrote concerning the inventory intimately lately, I flagged up some key factors. For instance, even with this fall, the price-to-earnings ratio is simply slightly below 10. Due to this fact, I don’t see it as an undervalued purchase proper now.

Additional, in a state of affairs the place there may very well be a crash, client discretionary shares usually get hit exhausting. It is because throughout a recession, individuals usually in the reduction of on luxurious spending.

Placing that each one collectively, I don’t need to purchase Burberry shares at present. But when we noticed the inventory fall considerably over the subsequent month, there would come a degree the place I’d step in and purchase. It is because the posh vogue home is iconic and has confirmed over many a long time that the enterprise mannequin works. I don’t see any threat of it going bust.

With a brand new CEO and a swift technique shift, I feel that the model will be capable to come out of the woods alive, albeit over the long run.