With the markets opening higher this morning, and the S&P/ASX200 (ASX: XJO) rapidly approaching its July highs, it’s certainly an exciting time to have money invested this week. Choosing where to deploy additional capital in this kind of market is a little less exciting though – after all, higher prices often mean more downside risk.
So here’s how I would spend $20,000 on ASX200 shares today.
Newcrest Mining Limited (ASX: NCM)
Newcrest is attracting my attention this week as the NCM share price hovers around its lowest levels since early June – $30.53 a share at the time of writing. Sure, the gold price has come off the boil recently, but this is to be expected when markets are reaching record highs.
Newcrest is the ASX’s largest gold miner, and best proxy stock for gold exposure in my opinion. Gold miners like Newcrest can play a hedging role in a portfolio, and so today’s quotes for NCM shares could prove to be a buying opportunity for the careful investor.
Afterpay Touch Group Ltd (ASX: APT)
After pay is another stock that’s had a shocking October – falling from an all-time high of $37.41 mid-month to just $25.84 last week – a 3-month low.
Still, this company’s buy-now, pay-later platform has exceeded all expectations in both its UK and US launches, and I think it has succeeded in building a formidable and effective brand in this increasingly crowded field. APT shares have rebounded strongly today – trading at $28.22 at the time of writing, but if this stock’s past is anything to go by, it might be a good time to jump back in.
Origin Energy Ltd (ASX: ORG)
Origin shares hit a new 52-week high this morning of $8.31 and are trading for $8.22 at the time of writing. Despite this high point, I think having a strong, defensive stock like Origin in your portfolio can bring a lot of benefits.
As a utility company, demand for Origin’s energy services is remarkably inelastic – meaning it’s unlikely to be affected by any tough economic times that the future might bring. ORG shares also offer a 3.04% fully franked dividend on current prices, which doesn’t look too bad in this era of ultra-low interest rates.
There you have it, 3 ASX shares that I’m looking at this week. On current prices, I think Afterpay might be a good bet for the week, but I also think Newcrest is a compelling stock for the brave investor today.
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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.