The ASX is continuing to fret about the coronavirus (and with good reason of course). After a fiver of losses last week, it looks as though the S&P/ASX 200 (INDEXASX: XJO) is about to make it six in a row (although ASX shares have somewhat recovered since this morning).
But the silver lining in this cloud is most of our favourite ASX shares are now going for a lot cheaper than they were two weeks ago. That means in short, it's a great time to be a buyer (in my opinion, anyway).
So here is where I would look to invest $10,000 in ASX shares this week.
Fortescue Metals Group Limited (ASX: FMG)
Fortescue is one of the biggest iron ore miners in the world. The Fortescue share price has been trading above $10 since December but has dropped to around the $9 mark as of today. Although the iron ore price is plummeting over the coronavirus concerns, Fortescue is more than able to weather the storm, with an average cost per mining a tonne of ore around US $12/13 (the current price of iron ore is around US$83 a tonne).
For these reasons, I'll be keeping my eye on the Fortescue share price this week, especially considering its recent dividend history!
Commonwealth Bank of Australia (ASX: CBA)
Commonwealth Bank is another ASX blue-chip share shedding some value recently. It's strange to think that the CBA share price was pushing $90 just a fortnight ago. Today, it's back under $80 for the first time since early January.
That means the trailing dividend yield for CBA is back over 5% (5.39% to be precise). In my view, CommBank remains the best 'big four' bank on the ASX with no dividend or franking cuts dished out to shareholders last year. Thus, I'll also be keeping a close eye on this banking giant this week for any further pricing weakness.
Afterpay Ltd (ASX: APT)
Afterpay was one of the worst stocks to be hit last week – falling from over $40 a share the prior week to $32.04 today (at the time of writing).
Still, this is a capital light business with (what I see as) little risk to supply chain disruption, travel restrictions and other maladies that other companies might be affected by during these trying times. Therefore, I think Afterpay is definitely a stock to pay attention to this week, especially if you've been waiting for a buying opportunity for the BNPL (buy now, pay later) pioneer.
