Are we seeing a slow-motion second stock market crash right now?

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Kevin Godbold | Thursday, 30th July, 2020 Image source: Getty Images See all posts by Kevin Godbold I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Are we seeing a slow-motion second stock market crash right now? I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. “This Stock Could Be Like Buying Amazon in 1997”center_img Kevin Godbold has no position in any share mentioned. The Motley Fool UK owns shares of Next. The Motley Fool UK has recommended Barclays, Compass Group, Lloyds Banking Group, and Unilever. 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. Our 6 ‘Best Buys Now’ Shares Enter Your Email Address The stock market crash in the spring was brutal. Shares dropped like an elevator with a broken cable. Covid-19 hit the world hard and fast, and economies locked down all over the world.Since then, the threat of a second stock market crash has been hanging in the air. Many people have heard how the second wave of the Spanish flu pandemic was worse than the first just over 100 years ago. Naturally, we all fear a similar scenario now.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Will the second stock market crash be in slow motion?And just lately, there have been a few worrying signs of the virus bubbling back up around the world. Even our prime minister, Boris Johnson, has been talking about the possible beginnings of a second wave abroad.But it’s not decisive. It’s not absolute. And I reckon that’s why we haven’t seen a massive second crash in the stock market so far this year. But with the rising concerns about the virus, I do think we are seeing some shares rolling over and giving back some of the gains they made following the spring crash. Are we seeing a second stock market crash developing in slow motion?Look at bank shares, for example. At today’s share price around 102p, Barclays is about 23% down from its recent bounce-back peak. And at just over 26p,  Lloyds Banking Group has retraced back down by 30%. It’s happening in other sectors too. At 620p, housebuilder Vistry is around 30% down and heading in the direction of its spring lows. And at 120p, Taylor Wimpey is 28% lower.Meanwhile, airline operator easyJet is more than 40% down again, and food-service provider Compass has retraced lower by 25%. It seems that all these businesses have one thing in common – they would all be hit hard if Covid-19 caused more lockdowns in the economy.Some names remain strongIn fairness, not all shares are taking back recent gains. Just yesterday for example, fashion clothing and accessories retailer Next shot up by around 10% in just one day. The company issued a positive trading statement declaring sales had been better than expected through the coronavirus crisis.And plumbing and heating supplies distributor Ferguson is holding on to recent gains. As are security software provider Avast, retailer Dunelm, and consumer goods champions Unilever and Reckitt Benckiser.I think the weakness we’re seeing in the out-and-out cyclical businesses underlines how sensitive and vulnerable they are to wider economic conditions. Meanwhile, investing guru Warren Buffett teaches us to cheer lower prices in the stock market. When the stock market moves lower and share prices fall, there’s more chance of picking up a bargain with shares.There are differences in performance and investor sentiment between various sectors. I reckon that demonstrates how important it is to marry your search for ‘cheap’ with a focus on the quality of the underlying business.Now’s a good time to go shopping for shares, but I’d be very selective in my choices. 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.last_img read more