The UK market had a couple of wobbles, but it is still going strong so far this year. However, it's difficult to say how long the markets will stay bullish and when we will enter the phase of a big collapse.
But, if the markets eventually crash, and they will, the one stock you should buy is Games Workshop (GAW). In case you don't know, this company is the owner of the board game Warhammer 40K.
Even the CEO of Games Workshop has invested 400K into the company. This is a sign that he also supports the Games Workshop and believes in it.
And if we look at valuations for Games Workshop, its P/E is around 27. Now, that's a little bit high, and the stocks with high valuations are hit hard when the markets eventually crash.
That's why we recommend that you only buy this stock when the markets crash. When this happens, the P/E ratio of the Games Workshop stock will return to normal. And since it is a very solid stock, you will be able to get some of it at a bargain.
Just like the Games Workshop stock, you should also look at other stocks you could buy during a crash. This will allow you to diversify and mitigate your risk in the worst-case scenario of a crash.
The basic business model of the Games Workshop is also very strong. They make board games and have a massive user base in the UK, USA, and other major markets.
Also, the profitability and the net revenue of the Games Workshop are very strong. They can sell their products at a premium, and their user base is willing to pay for it.
So, if the UK stock market crashes and the P/E ratio of Games Workshop stock becomes favorable, you can consider buying this stock.