Global markets are wobbling again, so UK investors looking for stocks to buy need to pay close attention to their options.
Rather than showing signs of resolution, the ongoing conflicts in Ukraine and the Middle East seem to be more uncertain than ever.
Oil prices are swinging wildly as tensions around the Strait of Hormuz increase, leading to growing uncertainty among market analysts.
As these issues drag on, more and more investors are asking: is the stock market heading for a crash?
How to prepare for a stock market downturn
This year, the Dow Jones has flip-flopped between 45,000 and 50,000, while the S&P 500 dipped to 6,340 before surging past 7,500. Meanwhile, the FTSE 100 nearly cracked 11,000 points before briefly falling back below 10,000.
When I see sharp index moves like that, I think less about predicting the next crash and more about making my portfolio resistant to risk.
A few simple actions can help:
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Keep some money in cash.
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Trim higher-risk positions.
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Tilt a little more towards defensive shares.
That does not mean hiding from the market. It means being ready if sentiment turns and investors start moving into bonds and other lower-risk assets, which can feed a broader correction.
What, then, counts as a defensive share?
The advantage of defensive shares
Defensive shares are businesses that tend to hold up better when the economy slows. They often have resilient earnings, dependable dividends, and exposure to sectors with steady demand, like utilities and healthcare.
Many also sell globally, which can smooth out weakness in any single market.
Unilever (LSE: ULVR) is a classic example.
Below are a few of its top defensive credentials:
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It sells everyday brands that people need, even when money is tight.
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It has global reach, not just UK exposure.
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It pays a dividend with a yield typically around 4%.
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It’s fairly valued, with a price-to-earnings (P/E) ratio of 16.08.
In its 2025 full-year results, the group reported underlying sales growth of 3.5%, underlying operating profit of €10.1bn, and operating margin of 20%.
Free cash flow came in at €5.9bn and underlying earnings per share (EPS) reached €3.08. More recently, the company’s Q4 underlying sales growth came in at 4.2%, beating forecasts.
However, management has warned that 2026 growth could be slower. That’s partly because the company is currently undergoing a restructuring and brand strategy update. While this is aimed at improving efficiency, it also adds execution risk.
Not to mention, there’s the ever-present threat of competition. Cheaper rivals can put pressure on pricing, even when brands have a strong following.
