Although it might not seem it, I think it's a great time to be a 'net buyer' (as Warren Buffett would say) of ASX shares.
I'm not suggesting we've found a 'bottom' in the market right now – in fact, we very well could go lower from here. But no one knows when that will happen. And all I know right now is that ASX shares are on sale!
So here's where I would spend $5,000 on ASX shares today.
Telstra Corporation Ltd (ASX: TLS)
Telstra shares have lost quite a bit of skin in the last month – going from around $3.80 to today's share price of $3.30 (a 13% swing). I think this is a company that will suffer relatively little from what's currently happening in the global economy. I can't see people disconnecting their phone plan or broadband under almost any circumstances, after all.
Telstra shares are currently offering a grossed-up yield of 6.93% – which I think is another reason to like the current share price. Thus, I think the Telstra share price is showing some decent value today.
WAM Microcap Ltd (ASX: WMI)
WAM Microcap is a Listed Investment Company that focuses on the smallest companies on the ASX – an often under-scrutinised area beyond the comfort of a retail investor. It has managed to achieve a 17.1% annualised return (before fees) since its launching in June 2017, an admirable performance in my view.
Today, WMI shares are trading for an 18% discount to their underlying value (net tangible assets) as of February, so I think it's a good time to strike with this one. WAM Microcap also pays a hefty dividend – which equates to a trailing yield of 4.74% on current prices.
Coles Group Ltd (ASX: COL)
The Coles share price has been highly volatile in recent weeks as investors balance general market pessimism with the obvious fact that supermarket sales have been ballooning due to panic buying of essential items. Thus, I think if you're looking for a safe harbour in today's share market, Coles is a great pick. It has a highly defensive earnings base as well as a solid dividend.
This dividend will net you a trailing grossed-up yield of 3.3% on current prices, which isn't half-bad considering the Reserve Bank of Australia is likely to lower interest rates even further soon (in my opinion). Just this morning, the US Federal Reserve made another emergency cut to interest rates, dropping its benchmark interest rate to zero.
Foolish takeaway
Although shares are not the place that many investors want to have their money right now, I think we have some unique buying opportunities available right now that might not stick around forever. Thus, I think it's a good time to be brave and pick up some of your favourite ASX shares today!
