The ASX200 (ASX: XJO) is close to hitting an all-time high again, which is great news if you're invested in shares.
It's not the banks driving that recovery. The Westpac Banking Corp (ASX: WBC) share price has been hurt by the AUSTRAC scandal. National Australia Bank Ltd's (ASX: NAB) result and dividend cut disappointed investors.
But plenty of other blue chips are doing well to drive the index higher. BHP Group Ltd (ASX: BHP), CSL Limited (ASX: CSL) and Macquarie Group Ltd (ASX: MQG) are all doing well. Infrastructure stocks like Transurban Group (ASX: TCL) and Sydney Airport Holdings Pty Ltd (ASX: SYD) have been driven higher by rising earnings and lower interest rates.
But where are you supposed to invest when the market and so many shares within it are trading close to their all-time highs?
Well, quality does tend to win over the longer-term, so I don't think CSL would be a bad pick even at this elevated price compared to other blue chips. It might hit $300 in 2020!
But looking lower down the market capitalisation list I think there are plenty of solid, dependable business that are growing profit but are trading a lot cheaper than tech shares.
There is usually always something that we can buy that's good value. One of the divisions within each of Webjet Limited (ASX: WEB), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and Brickworks Limited (ASX: BKW) are facing short-term issues which are likely to improve within 12 months, but they're priced as though the pain will be longer than that. I think they could all beat the market over the next year and five years at the current prices.
If there's nothing that you think is good value then it's okay to hold cash until an opportunity pops up. We don't have to swing at every opportunity.
Foolish takeaway
We always need to pay attention to the price we pay when we invest, but it's even more important when asset prices are elevated like they are today. But, there are still opportunities out there on the ASX and we just need to focus on these.
