Global share markets have shown remarkable resilience in 2025, with indices like the FTSE 100 and S&P 500 recording a 14% increase since January 1. This growth comes despite rising concerns about a potential stock market crash due to escalating inflation and signs of an economic slowdown. With fiscal challenges intensifying across Western economies and geopolitical tensions rising in Europe and the Middle East, the outlook for markets appears increasingly precarious.
While a market crash is not a foregone conclusion, it is prudent for investors to reassess their portfolios and identify stocks that may be worth purchasing should equities experience a downturn. Historically, price corrections have often presented the best opportunities to acquire quality companies at reduced prices.
Two stocks that merit attention in the event of a market decline are AG Barr and Clarkson.
AG Barr has witnessed a 10% rise in its stock value this year, resulting in a forward price-to-earnings (P/E) ratio of 16.1 times. This places it at a premium compared to the broader FTSE 250’s average P/E of approximately 13 times, a valuation that may not be justified in the current climate. Known for popular soft drink brands like Irn Bru and Rubicon, AG Barr enjoys strong brand loyalty which generally sustains its performance even during economic downturns. Recent financial reports indicate a 3.1% increase in revenues for the six months leading up to July, despite broader consumer spending pressures. However, concerns about AG Barr’s growth potential—particularly when compared to global rivals such as Coca-Cola—remain. The company’s limited international presence is a significant factor, leading investors to consider holding off on further investments for now.
Conversely, Clarkson, the world’s largest shipbroker, has seen its share price decline by 7% since the start of 2025, amid increasing trade tariffs and economic instabilities affecting the shipping market. This downturn highlights the vulnerabilities faced by Clarkson in the current economic environment. A forward P/E ratio of 17.3 times suggests the stock remains somewhat overpriced, considering the existing risks. However, should Clarkson’s shares experience a recovery, their strategic position could benefit from improving trade dynamics as the global economy rebounds. Additionally, the recent scarcity of new shipping supplies could drive freight rates up, offering further potential for profitability. Clarkson is also well-placed to capitalize on the shift towards renewable energy, particularly through segments like LNG carriers and vessels supporting offshore wind projects, which could yield significant long-term earnings opportunities.
As markets navigate these turbulent waters, investors are advised to remain vigilant and strategically position themselves in anticipation of future trends.
