As stock market behavior is cyclical, and major market downturns historically happen relatively frequently, most investors will need to be prepared for a significant market crash sometime in their investing lives. During the bad times, however, some stocks take a harder hit than others.
In this video, Motley Fool industrials analyst Blake Bos takes a look at the world of 3-D printing, and discusses what happened to Stratasys (NASDAQ:SSYS) stock during the 2008 market crash. Stratasys is not particularly insulated against a major market downturn due to just how expensive its printers and materials are. These represent very large purchases to its customers, and sometimes, those purchases just can't be made during tight economic times. However, while Blake shows just how negatively a recessionary climate can affect Stratasys' revenue, he also shows that the panicked overselling that occurred during the crash would make an excellent buying opportunity for investors seeking to start a position in Stratasys, or dollar-cost average into an existing position, supposing such a downturn happens again.
Blake Bos has no position in any stocks mentioned. The Motley Fool recommends Stratasys. The Motley Fool owns shares of Stratasys. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.