The problem with stock market crashes is that no one really knows when the next one will come. For most investors, however, there is nothing to fear.

Being prepared for a stock market crash is an necessary part of being a good investor. And it’s probably easier than you think.

Is there a breakdown coming?

Conflict in the Middle East is causing share price volatility this week. The situation is changing rapidly and it cannot be ruled out that something earnest will suddenly happen.

Oil and gas prices are rising due to supply problems. And the situation could get much worse in the event of prolonged disruptions – or even military action – in the Strait of Hormuz.

However, there is a chance that the situation will be resolved relatively quickly. If that happens, prices will likely drop again and we can all go back to thinking about AI all day long.

In moments like these, predicting what will happen next is extremely arduous. The thing to do is try to build a portfolio that can ultimately handle both outcomes.

Market timing

Buying when a stock market crashes is a recipe for exceptional long-term success. Unfortunately, no one really knows when this will happen until it’s too behind schedule.

Fortunately, however, profiting from falling stock prices does not depend on timing. Investors can do great even if they are behind schedule or a little behind schedule.

During the pandemic FTSE100 dropped by 30% in a month. But even investors who bought on the worst time – just before the crash – they still achieved a return of 76% over six years.

It doesn’t matter if you miss the bottom, it’s 10% a year for reaching the top. Therefore, investors do not have to worry about the right moment to take advantage of falling share prices.

One to watch

One stock I am watching and would consider if it falls further is the stock market Bunzl (LSE:BNZL). The FTSE 100 distributor had a arduous 2025, with earnings per share falling 7.7%, partly due to the faint US trading environment.

If geopolitical tensions worsen the situation, the company could again face challenges in its largest market. This is a risk that anyone considering this action must keep in mind.

However, the company has a huge long-term advantage. Its scale means it can provide customers with a wider range of products faster and more reliably than competitors – and that’s hugely valuable.

What’s more, the stock doesn’t look pricey – even at today’s prices. Despite the decline last year, free cash flow of £579m represents a return of 8% on a market value of £7.08bn.

Investment strategy

Being a good investor is not about predicting the future behavior of the stock market. That’s good because almost no one can do it in any reliable way.

But it’s about knowing what power happen and be ready to deal with it. Investors can do this by preparing to buy shares when prices become attractive.

The conflict in the Middle East may cause stock prices to plummet. But if this happens, investors don’t have to time events perfectly – or even well – to have a chance at great returns.