4 ASX shares to buy in volatile markets

The uncertainty surrounding the ‘Brexit’ vote is going to create at least one certainty – volatility!

Although some investors might find it hard to stomach the high levels of volatility (especially when the market falls by more than 2% in a day), these events can often create attractive buying opportunities.

Remember – this isn’t the first or the last time markets will have to deal with uncertainty or negative news. We have seen it recently with things like US interest rate hikes, slowing economic growth in China and the ongoing issues occurring in various parts of Europe.

That doesn’t mean, however, I think the market won’t continue to fall from here. In fact, the Australia share market is likely to remain more volatile than normal until the result is confirmed following the June 23 vote.

In anticipation of potentially more volatility and share price falls over the next week or so, I am keeping an extra close eye on four shares that I think could be great buys if they become cheaper from here.

CSL Limited (ASX: CSL)

Even though CSL shares have already fallen around 5.3% over the past couple of days, I think the shares would be a real bargain closer to the $95 – $100 level. That might seem a long way away for such a high-quality company but the market can be extremely irrational in times of uncertainty.

CSL’s hugely valuable pipeline of new treatments and even its current sales are not going to be affected by how the ‘Brexit’ vote ends up so any significant share price decline could be seen as a rare opportunity to buy the shares at a discount.

Corporate Travel Management Ltd (ASX: CTD)

Unlike most of the other listed travel companies, Corporate Travel is exposed primarily to the very lucrative business travel segment. It has a proven business model that has delivered 22 consecutive years of growth and is rapidly expanding its footprint into new geographic regions with a disciplined acquisition strategy.

The shares have pulled back just under 8% since hitting an all-time high of $15.84 back in May, although with a forecast price-to-earnings ratio of around 36, I would like to see the shares pull-back even further before buying.

Sealink Travel Group Ltd (ASX: SLK)

SeaLink is directly exposed to the growing tourism sector with 53% of its total revenues generated from this sector. SeaLink also operates a number of transport ferry services throughout Australia and both segments showed strong earnings growth in the company’s most recent results.

As a result, the shares have performed extremely well over the past 12 months and have recorded a rise of around 78%.

Although I remain positive about the outlook for SeaLink, its shares appear quite fully valued trading at around 22x earnings. Personally, I would want to buy the shares with a price-to-earnings ratio below 20, which would mean the shares would need to fall to around $4 per share.

Platinum Asset Management Limited (ASX: PTM)

I’m already a shareholder of Platinum, but I actually wouldn’t mind seeing a temporary fall in the share price to provide me with an opportunity to top up my holdings.

Platinum is a very well-run fund manager and although it won’t be able to avoid any global market sell-offs, I think it has a good chance of outperforming the broader market over the long term and this will reward patient investors.

The shares aren’t particularly expensive at the moment, trading at just 16x earnings, but investors may have the opportunity to buy them at an even more attractive price if markets become even more nervous.

Dividends are crucial when it comes to volatile markets so why not consider these five dividend shares that could help protect your portfolio?

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Motley Fool contributor Christopher Georges owns shares of Platinum Investment Management Limited. 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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