With the S&P/ASX 200 Index (ASX: XJO) now into bear territory, it is a really tough time for investors. Perhaps you are in retirement or approaching retirement soon and are really worrying about the impact that this market crash will have on your future retirement savings.
However, keep in mind that even if you are in your 60s, then you probably have at least another 20 years of share investing ahead of you, and if you are in your 40s then you are looking at another 40 or so years.
These long-term horizons will smooth out any major market corrections, like the ones we are now experiencing. If we look at the history, markets always bounce back eventually, and the ASX has always averaged around 10% per annum including dividends.
With that in mind, and major corrections to their share prices, here are 2 of my top ASX 200 share picks right now for long-term growth right now.
CSL Limited (ASX: CSL)
CSL has recently overtaken the Commonwealth Bank of Australia (ASX: CBA) to become our largest company by market capitalisation. However, it has been long road for CSL to reach this position, growing from a very small government department back in the 1990s.
In its financial results announced last month, CSL recorded an 11% increase in revenue to US$4,980 million in constant currency for the 6 months to 31 December 2019. This was a very strong result, and has followed more than a decade of solid growth. I believe that this growth is set to continue over the next decade, and with a strong correction to its share price recently, I believe that the market is offering a great buying opportunity.
CSL's significant investment into research and development creates a pipeline of new products, and provides it with additional revenue streams.
Commonwealth Bank of Australia
The big four banks – Commonwealth Bank, Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ) – have all come under enormous pressure over the past week with major corrections to their share prices, despite a late rally on the market on Friday.
I believe that this offers investors a rare buying opportunity. Commonwealth Bank is my pick of the big four right now and is currently trading with a dividend yield of 6.3% – that's a grossed-up yield of 9%. I think the bank is well placed to capitalise on the rising demand for residential property over the next decade, despite short term challenges in an ultra-low interest rate environment.
