All members of the shares in the S&P/ASX 50 Index closed lower on Tuesday as coronavirus concerns continued to hit markets. The S&P/ASX 200 Index (INDEXASX: XJO) finished 1.60% lower on Tuesday after shedding 2.25% on Monday.
These risk-off moves have pushed valuations back to where they were in early January. But does this short-term reset on share prices make now a good time to buy?
Why today is a good day to buy ASX 50 shares
I tend to agree with the Barefoot Investor's logic when it comes to market crashes – view it as a sale. If you're thinking short-term, you might be panicked about a weak couple of days on the ASX.
However, it doesn't make much sense to think short-term when you're investing long-term. If you're a buy and hold investor like me, this week's downturn could be a great chance to buy.
If you didn't have the cash at the start of the year, you might have kicked yourself about missing out on gains. However, the topsy-turvy nature of the share market means some of the ASX 50 shares could be back in your buy zone.
The real key here is to make sure you're always saving and investing as much as possible. That way, when a market turns and you get a "sale", you can load up on goodies.
Given all of the ASX 50 shares fell lower on Tuesday, and only Newcrest Mining Limited (ASX: NCM) climbed on Monday, everything is on watch. I personally like the strong cash flow companies with decent payouts to shareholders.
These ASX 50 dividend shares can provide income for a range of purposes and can come at quite good valuations. At the moment, that could mean looking at CSL Limited (ASX: CSL) or Telstra Corporation Ltd (ASX: TLS). If markets turn, I'd rather be in dividend-rich shares than betting on high price-to-earnings (P/E) growth shares.
However, if you are a growth investor, Altium Limited (ASX: ALU) could be worth a look. The Altium share price fell 0.97% yesterday and is down 23.65% since last Monday. That could make the engineering software group one of the better value ASX 50 shares to buy right now.
