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Where I would spend $20,000 on ASX shares this week

With another week kicking off on the markets, it’s always a good time to check your portfolios and see which area might be due for some love, as well as which areas might need some pruning. Most experts agree a healthy, diversified balance of different stocks in your portfolio is the best way to achieve long-term success.

So, with that said, here are 2 very different ASX shares I would spend $20,000 on this week.

JB Hi-fi Limited (ASX: JBH)

JB Hi-fi shares have recently come off the boil and are today going for $35.83 – a 5% drop from the all-time high JBH shares hit just last week. I like JB – I think it’s one of the best retailers in the country and has proven its many detractors wrong, time and time again.

Whether it’s the impending doom from Amazon’s Australian ‘invasion’ or the shifting consumer trends away from physical media, JB has continued to prove an ability to read its market well and stay ahead of its critics and its competition. JBH shares currently pay a 4% dividend to boot, so, all in all, this is a stock that I’d be happy to fork out for this week.

Rio Tinto Limited (ASX: RIO)

Rio Tinto has had a fantastic day on the markets today, with RIO shares up 3.54% at market close to $93.69 a share. I still think there’s a lot to like about this miner at these levels – iron ore prices are holding up surprisingly well after their spike earlier this year, and Rio’s exposure to the uranium, copper and diamonds sectors is also a plus.

Rio, along with BHP Group Ltd (ASX: BHP), is one of the lowest cost miners in the world, which ensures that when prices are high, there is a lot of cash to go around for shareholders. We have seen this at work this year, with Rio throwing out record dividend payments as a result of the February spike in iron ore prices. Although commodity prices are notoriously cyclical, I think Rio is a great long-term stock to own for dividend income, as well as a bit of growth on the side.

Foolish takeaway

I think these 2 ASX shares are amongst the best deals going on the market this week, and I would be keeping a close eye on both for a buying opportunity.

Having a variety of stocks in your portfolio is always a great principle to hold dear, in my view, and both JB Hi-fi and Rio Tinto are at the top of the retail and mining games, respectively.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. 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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