Although the S&P/ASX 200 (ASX: XJO) index has started off the week with a bit of a stutter, that just means it’s a prime time to sink some more cash into the markets.
Here’s how I would put a $10,000 lump sum to work in the share market this week.
Afterpay Touch Group Ltd (ASX: APT)
It always shocks me how much money flows out of growth stocks like Afterpay when there’s a hint of trouble on the horizon. After making a fresh new all-time high of $37.41 early last week, APT shares are now well and truly in the ASX doghouse. Afterpay shares fell over 20% between Tuesday and Friday last week and are swapping hands for $28.90 at the time of writing. If you’re a true believer in Afterpay’s future, it might be a great time to load up the truck.
BHP Group Ltd (ASX: BHP)
Another ASX share that has fallen out of favour recently has been the Big Australian. BHP shares are also down significantly from their 52-week high of $42.33, trading for $34.94 at the time of writing. I think this price is offering investors a pretty good deal here, especially considering BHP’s current dividend yield of 5.5%. Although BHP is a resources stock somewhat chained to the prices of the commodities it mines, it is still an ultra-low cost producer. Thus, I think it will continue to deliver stellar returns to its shareholders over the long-term.
Vanguard Australian Shares Index ETF (ASX: VAS)
With share prices relatively high this week, it might be a good time to just bulk out the passive investing portion of your portfolio (if you have such a thing). I think diversifying across the whole index is a great way of mitigating pricing risks in your individual stocks and Vanguard’s VAS ETF (exchange traded fund) is one of the cheapest ways of doing so. VAS charges a management fee of just 0.1%, leaving more money in your pocket at the end of the day.
Looking at the share market this week, I think these 3 ASX investments are amongst the best places to deploy your capital. Even if markets are rising, there are always value opportunities to take advantage of.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. 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 Scott Phillips.
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