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There is a 100% Chance of a Market Crash: Is Your Money Ready?

Christopher Liew, CFA
Handwriting text writing Are You Ready For Tomorrow question. Concept meaning Preparation to the future Motivation Stand blackboard with white words behind blurry blue paper lobs woody floor.

Who fears a market crash? Every investor does and rightly so because capital is at risk. If the crash happens tomorrow, is your portfolio ready?

The stock market is an excellent place to build wealth, and investing in stocks is one way to let your money grow abundantly over time. Overcoming the fear of losing money, however, is the greatest challenge.

With a 100% chance of a market crash happening, investors are on edge. Still, no one knows exactly the date when it could happen. Rather than worrying over the thoughts of losing money, you should prepare instead.

Companies such as Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) and Telus (TSX:T)(NYSE:TU) can ease your anxiety in the event of a market crash. With these stocks you get both money protection and safety.

Forever bankable

During a market crash, the fear of losing plays out extensively. Don’t get caught in a herd mentality and join in the panic selling. CIBC is one of Canada’s elite stocks. Even American investors see this bank stock as a certified recession-resistant investment.

CIBC is one of the vaunted Big Five banks in Canada, although it’s the smallest in terms of market capitalization. Its operations in the U.S. had greatly expanded since 2017 when it acquired PrivateBancorp.

Last August, CIBC saw a 6% quarterly increase in its U.S. commercial banking and wealth management division. On the domestic front, net income from its personal and business banking divisions grew by 2%, which is 47% of the bank’s overall adjusted net income. There were wider interest spreads and higher loan volumes.

The dividend history of CIBC is pretty impressive. It has been sharing its profits with shareholders through the dividends for 151 years, dating back to 1868. Today, its 5% dividend is the highest among the Big Five banks.

Aiming for superiority

Telus is a powerhouse in Canada’s telecom industry. Its market cap is nearly $30 billion at present. The company was able to generate $14.4 billion in annual revenue because of increasing customer patronage.

The number of Telus subscribers has reached 13.4 million, of which 68.6% are wireless subscribers, and the rest are in the high-speed internet (1.9 million), phone (1.2 million), and TV (1.1 million) business segments. Last year, internet and wireless subscribers grew by 6.6% and 3.6% respectively.

Telus will be operating for the long haul. The company is acquiring ADT Security Services Canada, which is a leading provider of security and automation solutions serving residential and business customers. With the acquisition, Telus gains about 500,000 customers instantly.

Expect Telus to leverage the power of technology and bring superior telecom services to more households and businesses in Canada. The best part is that the 4.73% dividend it pays today is sustainable as business growth accelerates in the coming years.

Manage your fear

A market crash is indeed coming, but you have to check first where your fear is originating. The reason might be because your portfolio is not ready for the eventuality. If not, take the safe approach and seek safety in CIBC and Telus. Both are dividend aristocrats that will endure an economic downturn.

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Fool contributor Christopher Liew has no position in any of the stocks mentioned.

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