The past few days in the stock market have been like a roller coaster. Looking at one’s portfolio during such times can be alarming. The FTSE 100 flagship index of leading UK stocks has been a sea of red during some recent trading sessions.
For a long-term investor like myself, I try not to pay much attention to such short-term swings in valuation. But that does not mean I am ignoring the stock market turbulence. After all, the sort of falling share prices we have seen can sometimes signal an outstanding buying opportunity for the long-term investor.
Broad-based price falls
Across the pond, the S&P 500 index is down 11% over the past week alone (well into correction territory, though still some way from a crash).
Things look no better for UK stocks, with the FTSE 100 also down 11% over the past five days.
That may seem surprising as the US index previously looked costlier than its London equivalent. Indeed, over five years, the former is up 79% while the latter has climbed a more modest 31%.
But clearly, investors in many markets are nervous right now.
That is not limited to specific companies that are perceived to have a direct connection to the impact of US tariff moves, either. As I write this on Wednesday afternoon, 97 of the 100 shares in London’s index of blue-chip stocks are lower than they were when the market opened this morning.
Hunting for quality shares on sale
One of the three shares bucking the trend, incidentally, is JD Sports (LSE: JD).
I have been buying JD Sports shares during recent market turbulence partly because of the disconnection between short-term share price moves and what I see as the sportswear retailer’s underlying long-term value.
Despite today’s positive moves, the JD Sports share price is still 28% down since the start of 2025. I thought it was cheap at a pound – and it now trades for barely two-thirds of that!
The company has a large US business. It also makes a lot of its money selling shoes made by US companies like Nike, that are manufactured in countries such as China and Vietnam. So the tariffs are a real risk to profitability. That comes on top of multiple profit warnings issued by the firm over the past year.
Resilience in a tough market
But with a proven business model, large customer base, and unique brand, I remain upbeat about the long-term outlook for JD Sports.
A trading update today (9 April) said that it expects full-year like-for-like revenue growth for its most recent year to be about 0.3%. That is not the stuff of investor dreams, but is decent given the tough trading environment. It described the impact of US tariff changes as “uncertain“ for now.
But JD Sports, selling on a price-to-earnings ratio of 11, is an example of a share that potentially looks like a screaming bargain to me. Its share price has fallen 57% since September, yet I think the business continues to look strong.
That is not true for all shares, of course. But for the long-term investor choosing shares carefully, I think the current market is throwing up some potentially great bargains among UK stocks.
