2 FTSE 100 stocks I’d buy before Mr Market changes his mind!

I think Mr. Market is offering long-term investors some gifts right now. But it’s unlikely to stay that way for long. So I’m going to kick these two FTSE 100 shares before canceling the offer.

Prize number one

Like Tarzan, Share from Scottish Mortgage Investment Trust (LSE: SMT) has been swinging lower for about 18 months now. They fell to 670p from a price of 1,550p reached at the end of October 2021. Shares are now at three-year lows.

The reason is that bad news keeps coming for Scottish Mortgage shareholders. A brutal sell-off in tech stocks has begun since the end of 2021, fueled by rising interest rates, compounded this week by the dramatic collapse of Silicon Valley Bank.

This lender holds money for about 10,000 startups and small businesses. Down-out of this risk for Scottish Mortgage’s portfolio, because it has around 52 private companies, many of which are start-ups in the portfolio. We do not know whether we may experience cash flow difficulties as a result.

However, in January, half of the trust’s assets were in quoted companies with a net cash position, while 48% were profitable. Of the 22% that are unprofitable, 8% of those generate positive free cash flow.

On the private side, large holdings such as TikTok owner ByteDance and SpaceX are unlikely to face cash flow problems. They would be the largest and third largest company, by market cap, if listed on the FTSE 100 today. At least according to the latest private market valuations.

Additionally, the trust’s shares are currently trading at a 16% discount to the net asset value (NAV) of the portfolio. Mr. Market is offering me an early Easter present here, and I will soon accept it.

Second prize

Share in insurance and asset managers Legal & General (LSE: LGEN) returned in September after the mini-budget debacle. While the stock recovered quickly, it shows how volatile L&G stock can be when macroeconomic issues are on the rise.

Like a recent day, for example, with US banks collapsed sending stocks down 8%. We don’t yet know if the company is affected, if at all.

In the meantime, there is a forecast dividend yield of 8.3% to offset this risk. And operationally, the company remains in tip-top shape, according to last year’s performance.

• Operating profit was £2.52bn, up 12% year-on-year
• Record profit after tax of £2.29bn, up 12% over 2021
• Earnings per share (EPS) were 38.33p, up 12% from 34.19p
• Solvency II coverage ratio 236%, up from 187%

The solvency ratio II measures the insurance company’s financial ability to withstand risks such as declining asset prices or increased liabilities. That number is 236% high, suggesting that this latest storm will be easy to handle.

Additionally, 37% of the £1.2trn assets under management are now international. That provides diversification and increased exposure to global development and growth.

One area that made gains last year was in the investment management division, where market movements affect the value of portfolios. However, I expect this to reverse sharply once the market stabilizes and regains its upward trajectory.

At 243p a share, I think Mr Market offers another long-term reward that I would be fooling around with (lower case f) to reject.