As I'm sure all you lovely readers know, the last three weeks have been a turbulent time for the ASX. The S&P/ASX 200 Index (INDEXASX: XJO) benchmark index has dropped from almost 7,200 points in mid-February to today's finish of 5,725.9 points – a 20.36% turnaround.
ASX growth shares have been a very popular investment strategy over the last few years. During a long bull-market, growth investing is typically a winner, and this has proved true in recent times.
But there's no such thing as a free lunch and growth shares tend to overshoot the broader market in terms of losses during tougher times. But that's precisely why I've got ASX growth shares on my radar today!
Here are two that have been catching my eye!
Afterpay Ltd (ASX: APT)
Afterpay shares have been absolutely obliterated over the past month – falling from over $40 to today's closing price of $27.03. That's a 33.3% turnaround in just three weeks (well exceeding the ASX 200).
But I'm watching Afterpay and wondering if anything fundamental has changed for this company over the past month. Sure, people might be buying less 'things' as a result of the coronavirus – which might hit Afterpay's transaction volume in the short term. But I do not see any long-term game-changing issues for this buy now, pay later pioneer. Therefore, I think it's a great price to be buying Afterpay shares.
Xero Limited (ASX: XRO)
Xero is another ASX growth share that has come off recent highs. This fellow WAAAXer purveys online accounting software that is remarkably functional, easy to use and even fun (if you believe the company). Xero has been growing subscribers at breakneck speed and has recently become profitable for the first time (which is always a good thing).
In its most recent reporting, Xero grew subscribers by 30% to over 2 million – a huge milestone for the company. With growth rates like this, I think Xero is another great choice for today's market – especially after Xero shares have come off the boil and are 16% cheaper than they were before the crash.
Foolish takeaway
Since ASX growth shares tend to outperform the market in good times and underperform in bad – I think buying some in a market downturn is a great way to invest against the grain! Both shares mentioned here are (in my opinion) prime candidates for such an investment on current prices!
