Amid growing fears of a market correction, several analysts have warned that S&P500 may be heading towards a edged decline – and it may take time FTSE100 down with it.

Andrew Ross Sorkin z The New York Times AND CNBC recently warned that today’s market conditions uncomfortably resemble those of 1929 before the Great Depression. In his opinion, the question is not whether a major correction will occur, but when and how severe it may be.

Meanwhile, Crazy money host Jim Cramer expressed concerns about the impact of a volatile cryptocurrency market on the broader S&P 500 index. In addition to these concerns, the International Monetary Fund (IMF) warned of growing sensitivity in U.S. markets. He notes overvaluation, excessive concentration of large-cap technology stocks and rising systemic risk as signs of excessive investor complacency.

Could the FTSE 100 Index follow suit?

The FTSE 100’s weighty exposure to international companies means it rarely moves in isolation. Many of its members sell to the United States, so if the U.S. market deteriorates, the effects could easily reach the Atlantic.

Andrew Bailey, former governor of the Bank of England (BoE) and currently chairman of the Financial Stability Board (FSB), recently warned of the potential emergence of a tech bubble in the US. He warned that the sudden development of the situation could destabilize world markets, including the British market.

Similarly, macro strategists have highlighted that the close links between the US and UK markets mean that a sell-off in the S&P 500 could cause the FTSE 100 to fall – especially given its exposure to global demand and financial flows.

Stay on the defensive

So how can investors prepare for this type of uncertainty? Many are moving funds into established safe and sound havens such as precious metals, fueling a rally in mining stocks. Golden pancake. While these assets can perform well in turbulent times, they often exhibit volatility when sentiment changes.

Personally, I prefer stocks with sturdy defensive characteristics – companies that continue to generate revenue regardless of the economic climate.

Sectors such as utilities, consumer staples and healthcare fit this bill well. The FTSE 100 are stalwarts National Network, Unilever, AND GSK are classic examples. These companies provide imperative goods and services that are in high demand, even during a recession.

Perfect example

To take AstraZeneca (LSE: AZN). The pharmaceutical giant proved its resilience during the 2008 financial crisis and even managed to post profits during the Covid-19 years. While recent volatility is keeping the share price steady, the company’s enormous size, diverse product range and sturdy global presence make it a defensive stock.

AstraZeneca invests over £5 billion a year in research and development (R&D), making it one of the most productive pipelines in the industry. Its operations cover over 100 countries, spreading risk across regions and currencies.

Admittedly, the company’s dividend yield of 2.4% is not high, but payouts are stable, well covered by profits and supported by a disciplined balance sheet.

Siding with safety

I’m not saying AstraZeneca is perfect – it still faces risks from patent expiration, competition from generics, and the unpredictability of novel drug development.

However, compared to many cyclical companies that may have seen revenue collapse during the crash, it is certainly showing much greater resilience.

In times like these, I think it’s worth considering allocating some of your funds to defensive stocks like AstraZeneca. This is a popular strategy used by many investors when planning for potential market turmoil.