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Why now is a great time to buy ASX shares

Credit: Ken Teegardin

Equity markets around the world sprung to life last night, following a lead set by Australia’s own share market on Tuesday ending what was otherwise a woeful quarter for investors around the globe.

In the United States, the Dow Jones rose 1.5% while the S&P 500 and NASDAQ indices rose 1.9% and 2.3%, respectively. Meanwhile in Europe, London’s FTSE 100 gained 2.6% while and the German DAX rose 2.2%.

Although the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is tipped to open mostly flat after yesterday’s 2.1% relief rally, investors could take some confidence from the recovery which saw the banks and miners rise strongly.

Indeed, there’s every chance that shares could fall even further than their current level, but that’s something only day traders need to be concerned about. As it stands, the ASX 200 is sitting more than 16% below its peak from earlier this year, with a number of companies trading at very reasonable prices.

In other words, now could be an excellent time for long-term investors to make an assault on some of the country’s high-quality companies trading at beaten down prices.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. 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. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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