It was a rocky year for the flagship FTSE 100 Index of the leading Blue-Chip-but with some significant ups. Already this week the index was close to breaking its record high level of closure, set at the beginning of this year.

When the stock indexes reach a novel level, it does not necessarily mean that they are overstated. Perhaps they could continue to push up over the years (or even decades) before another great disaster. But we know from history that sooner or later the market will fall again.

So, when the FTSE 100 floating muscles bends, here’s what I do to avoid combustion if something suddenly moves south.

Two significant questions about each investment

I think there are several critical questions that knowledgeable investors must take into account when making any investment.

First of all: does the business in which they invest have excellent long -term commercial perspectives? Of course, we do not know the future, so we have to make this judgment, using current knowledge, at the same time to seriously think about potential risks and possibilities.

Secondly, the investor should ask himself whether the investment price is attractive. A great company is not always a brilliant investment because what you pay.

Occasions hunting on today’s market

FTSE 100 consists of the largest British stock companies. This does not mean that everyone is great companies – but in my opinion there are dozens of them.

While the index goes high, different actions in it do not work in the same way.

This is both a risk and an opportunity, as I see.

Some actions may be overstated – maybe badly inflated. I am cautious to be burned if I buy them now, just to see how their value will fall in the future. This helps to explain why I always conduct research before buying a participation.

But good results of the general indicator does not mean that this summer may not be certain potential opportunities.

FTSE participation to be considered

As an example, one share, I think that investors should consider the packaging distributor Bug (LSE: BNZL).

This is a great example participation it is not the same as index from which it creates one petite part. Over the past year, FTSE 100 increased by 8%. However, Bunzl is down 21% during this period.

I have been watching the company for some time, so I used the price drop to buy some shares.

Such a fall does not come from nowhere, of course. Tariff fears are a risk for Bunzl’s international business, but even without them the results were weakened (revenues slightly dropped last year, while net profit dropped by 5%). There is a risk that his glory of growth as a result of the takeover – and with it a mighty valuation – passed.

But with a vast number of customers who have to regularly order, a business model proven over time and a mighty trade reputation, I keep faith in this company FTSE 100 as a long -term investor.