Market Crash?: 3 Financial Stocks I'd Buy Hand Over Fist

Published: Tuesday, July 7, 2026 at 9:20 am

Market Faces Rich Valuation, Investors Eyeing Crash Bargains

The financial markets are currently exhibiting valuations that have historically preceded significant downturns, prompting discussions about the potential for a market crash. While the exact timing remains unpredictable, experts suggest that investors should remain prepared for such an eventuality. The Shiller or CAPE ratio, a measure of the average S&P 500 price-to-earnings ratio adjusted for inflation, stands at nearly 42. This figure has only been surpassed once in history, a period that was subsequently followed by a market crash and three years of investor losses.

In light of these rich market conditions, a diversified portfolio that includes stable stocks is recommended. Furthermore, investors are advised to be ready to capitalize on potential bargains that may arise during a market downturn. Three prominent financial stocks identified as strong buying opportunities in the event of a market crash are JPMorgan Chase, Visa, and Berkshire Hathaway.

JPMorgan Chase, the largest bank in the United States, is highlighted for its stability and protective qualities. The institution demonstrated robust financial performance in the first quarter of 2026, with revenue increasing by 10% and net income rising by 13% year over year. Its strong balance sheet, evidenced by $4.9 billion in assets and a tier 1 capital ratio of 14.3% (exceeding the Federal Reserve's 11.5% requirement), underscores its financial resilience. The bank also offers a growing dividend yield of 1.8%, providing an additional layer of investor protection. Despite trading at a price-to-book ratio of 2.6, which is higher than many peers, a significant price decline during a market crash would present an attractive entry point.

Visa, the world's leading credit card network, operates a highly profitable business model as a facilitator of global payments. The company earns a small fee for each transaction, connecting banks, consumers, and merchants without direct exposure to credit risk. Its service-based model boasts wide profit margins, with each additional transaction incurring minimal processing costs. In the second fiscal quarter of 2026, Visa reported a 17% year-over-year increase in revenue and a 20% rise in adjusted earnings per share. The company also provides a growing dividend yield of 0.7%. While concerns about inflation and a potential slowdown in cross-border payments have surfaced, Visa's dependable performance has historically commanded a premium valuation, making it a potentially valuable addition to portfolios during a market crash.

Berkshire Hathaway, under the leadership of Warren Buffett, has evolved into a global conglomerate with a market capitalization of $1.1 trillion. Beyond its substantial equity portfolio, the company owns nearly 200 diverse businesses and a significant insurance arm, GEICO. Berkshire Hathaway leverages the "float" from its insurance operations to generate investment income. In the first quarter of 2026, operating income saw an 18% year-over-year increase. The company's substantial cash reserves, approaching $400 billion, position it to effectively deploy capital during a market downturn. With a current valuation at 1.5 times book value, a significant price drop could make Berkshire Hathaway stock an exceptionally attractive investment.

BNN's Perspective: The current market environment, characterized by elevated valuations, warrants a cautious approach. While predicting market crashes is an exercise in futility, prudent investors should always be prepared for volatility. The identified stocks, JPMorgan Chase, Visa, and Berkshire Hathaway, represent established companies with strong fundamentals and proven resilience, making them potentially sound choices for those looking to navigate or capitalize on a market downturn. However, individual investment decisions should always be based on thorough research and personal risk tolerance.

Tags: market crash, financial stocks, JPMorgan Chase, Visa, Berkshire Hathaway, Shiller ratio, CAPE ratio, P/E ratio, diversified portfolio, safe stocks, bargains, revenue, net income, balance sheet, tier 1 capital ratio, dividend, price-to-book ratio, credit card network, profit margins, earnings per share, market cap, operating income, cash position

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