Will a weak UK economy lead to a stock market crash? – Motley Fool UK

0
262

Ten Steps To Financial Freedom
Smarter, Happier, and Richer: read our Foolish guide to getting your finances in order.
Investing Articles →
5 Stocks for Trying To Build Wealth After 50
If you’re aiming to get your finances on track and you’re in or near retirement, then here’s your chance to claim a FREE copy of an exceptional investing report featuring 5 stocks that The Motley Fool UK is expressly recommending for INVESTORS aged 50 and OVER to consider investing in!
Retirement Articles →
Compare Our Services
Find an investing service that’s right for you!
The Motley Fool UK’s personal finance team is here to help you tackle your short and long-term money goals. Whether you’re shopping around for a new credit card, top-rated share dealing account or stocks & shares ISA, we make it easy to compare products.
Manika Premsingh | Friday, 10th December, 2021
The FTSE 100 index is on a roll this week, as it continues to stay above the 7,300 mark. However, I am not feeling terribly confident that the stock markets will remain bullish. In fact, after looking at the latest numbers for the UK economy, I am beginning to think that we might just have a stock market crash on our hands soon. 
In October, the UK economy grew by a minuscule 0.1% from the month before. It also slowed down considerably from a 0.6% increase in September. The numbers are particularly disappointing right now, because growth was expected to pick up after the the easing of restrictions. And clearly, that is not happening quite as fast as was hoped. 
5 Stocks For Trying To Build Wealth After 50
Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.
But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.
Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…
We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.
Click here to claim your free copy now!
With the Omicron variant resulting in some travel restrictions and possibly even making us cautious about being in public places again, some more weakness could build into the economy. This in turn could have a sentiment impact on the stock markets and even show up in company’s results going forward. 
I also think that the rollback of government support to segments like real estate might have impacted the pace of recovery. Construction, which can be seen a loose proxy for property markets, actually saw a decline in October. It fell by 1.8%, the biggest fall since, wait for this, April 2020, which was very early in the pandemic. And one of the biggest contributors to this was the decline in the private new housing segment. 
Considering that there are a handful of property developers in the FTSE 100 index, this does not sound good for the markets. Even though they have reported growth in order books recently, I think the first signs of a slowdown in the housing market are here. And if there is a sudden crash in the segment, I reckon the FTSE 100 index as such could weaken.
However, there is reason to look on the bright side as well. Even if the broad weakness in the economy were to add to conditions that could result in a stock market crash, I think today’s report also indicates the best stocks to buy in that case. As we at the Motley Fool keep saying, a stock market crash is a buying opportunity. The latest numbers from the economy show that the services sector is doing well. It is back to its pre-pandemic levels, racing ahead of the overall economy.
One of the big contributors to its October growth is wholesale and retail trade. And considering that there are a few retailers among FTSE 100 and FTSE 250 constituents, I think these might make good buys for me. I reckon that especially those that either are e-commerce businesses or have significantly ramped up their online operations during the lockdowns could do quite well irrespective of the state of the recovery.  
Our 5 Top Shares for the New “Green Industrial Revolution"
It was released in November 2020, and make no mistake:
It’s happening.
The UK Government’s 10-point plan for a new “Green Industrial Revolution.”
PriceWaterhouse Coopers believes this trend will cost £400billion…
…That’s just here in Britain over the next 10 years.
Worldwide, the Green Industrial Revolution could be worth TRILLIONS.
It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead!
Access this special "Green Industrial Revolution" presentation now
Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

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.
Simply click below to discover how you can take advantage of this.

From 2015-2019, this UK company saw its revenues increase 38.6%, its net income go up 19.7x, and since 2012, revenues from regular users have almost DOUBLED.
We think the opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money…
So why sit on the side lines a minute longer? You could have the full details on this company right now.
To get your copy of this research report for FREE, simply click the button below.
Click here for all the details!

Looking for a new share dealing account or to switch providers? Use our broker comparison centre to read free, in-depth product reviews and to apply online!
Rated 5 stars out of 5 by The Motley Fool UK
The FinecoBank* Multi-Currency Trading Account offers UK investors highly competitive share-dealing rates across 26 global markets.
Open your account using promo code TRD500-ML and during your first 3 months you can trade without incurring commission charges – up to a total commission amount of £500. (Terms and conditions apply.)
*Affiliate Partner
Important information and risk disclaimer: The value of shares and any income produced can fall as well as rise, and you may get back less than you invest. Exchange rate fluctuations can reduce the sterling value of any overseas holdings.
Claim your copy of…
About Us  |  Contact Us  |  Fool Careers | The Fool UK Team  |  Legal Information  |  Disclaimer & Disclosure  |  Privacy & Cookie Statement  | GDPR | Terms & Conditions  |  Site Map
RISK WARNINGS AND DISCLAIMERS

The value of stocks and shares and any dividend income, may fall as well as rise, and is not guaranteed so you may get back less than you invested. You should not invest any money you can’t afford to lose and should not rely on any dividend income to meet your living expenses. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, administrative costs, withholding taxes, different accounting and reporting standards, may have other tax implications, and may not provide the same, or any, regulatory protection. Exchange rate charges may adversely affect the value of shares in sterling terms, and you could lose money in sterling even if the stock rises in the currency of origin. Any performance statistics that do not adjust for exchange rate changes are likely to result in inaccurate real returns for sterling-based UK investors.

We have taken reasonable steps to ensure that any information provided is accurate at the time of publishing. Any opinions expressed are the opinions of the author only. The content provided in this article has not taken into account the circumstances of any specific individual, and does not constitute personal advice or a personal recommendation for any individual; neither should it be relied upon by any individual when making an investment decision. If you require any personal advice or personal recommendation, please speak to an independent qualified financial adviser. No liability is accepted by the author, The Motley Fool Ltd or its Officers, or Richdale Brokers and Financial Services Ltd or its Officers, for any investment loss, or any other loss or detriment experienced by any individual for any investment decision, whether consequent to, or in any way related to this content, the provision of which is an unregulated activity. The Financial Ombudsman Service and Financial Services Compensation Scheme may consider certain investment related claims. Please refer to FOS and FSCS for up-to-date information, including eligibility criteria.
MyWalletHero, Fool and The Motley Fool are all trading names of The Motley Fool Ltd. The Motley Fool Ltd is an appointed representative of Richdale Brokers & Financial Services Ltd who are authorised and regulated by the FCA (FRN: 422737). In this capacity we are permitted to act as a credit-broker, not a lender, for consumer credit products. We may also publish information about consumer credit, loan, mortgage, insurance, savings and investment products and services, including those of our affiliate partners. We do not provide personal advice neither will we arrange any product on your behalf. Should you require advice you should speak to a qualified financial adviser.
The Motley Fool Ltd. Registered Office: 5 New Street Square, London EC4A 3TW.
Registered in England & Wales. Company No: 3736872. VAT Number: 188035783.
© 1998 – 2021 The Motley Fool. All rights reserved. The Motley Fool, Fool, and the Fool logo are registered trademarks of The Motley Fool Holdings Inc.

source