After freefalling as much as 8% in yesterday's trade, the S&P/ASX 200 Index (ASX: XJO) finished strongly, closing 4.42% higher on Friday at 5,539.30 points.
Perhaps you've been saving your cash to invest in more ASX shares and think this coming week could be your week. If that's the case, how do you know when is the right time to buy?
When is the right time to buy ASX shares?
ASX shares have been hammered lower in recent weeks, which has created buying opportunities. That means a market crash shouldn't be viewed too negatively if you have plenty of time on your side. With some cash in the bank, 2020 could actually be a good year for investing.
However, it's also important to consider which are the best ASX shares to buy right now, given the current landscape. We saw on Thursday that the USA's travel ban has hammered Aussie markets even further. The Webjet Limited (ASX: WEB) share price fell almost 20% lower in one day – there's understandably a lot going on for ASX travel shares right now.
Travel shares like Webjet are what I'd categorise as directly affected by the COVID-19 pandemic. Webjet's earnings are heavily influenced by the travel restrictions being put in place around the world. However, there are plenty of ASX 200 shares that have been hit hard in recent weeks, regardless of their sector.
For instance, if I had some cash saved up right now, I'd be looking at something like Xero Limited (ASX: XRO). I wouldn't say that Xero's accounting software platform earnings are directly hit by COVID-19. However, the Xero share price is down more than 8% since the market correction started (although it has edged higher since the start of the year).
One other ASX share that I'd be considering is Newcrest Mining Limited (ASX: NCM). Newcrest is a big name amongst the ASX 200 gold miners and could be in the buy zone. Newcrest shares are down 16.13% since the start of the year but I think they might be oversold right now. There is certainly lower demand for resources given China's manufacturing has slowed but I don't think the fundamentals have shifted that far for Newcrest in 2020.
