2 buys and 1 sell for investors worried about an ASX market crash in 2026

After a strong rally through to the end of 2025, the S&P/ASX 200 Index (ASX: XJO) is still trading close to its record high. But there are concerns emerging that the index is overheating, with stretched valuations indicating we could face an ASX market crash in 2026. After big share price rallies, markets are even more vulnerable to sharp corrections if investor confidence starts to waver. At the same time, news that the Reserve Bank could keep interest rates on hold (or even hike) for longer than planned puts pressure on household spending and company profits. And all this is…