ASX shares surged higher on Tuesday with the S&P/ASX 200 Index (ASX: XJO) climbing 5.83% to 5,293.40 points. But which ASX shares are in the buy zone right now?
Why now is a once in a generation investing opportunity
I think it's fair to say that ASX shares are all over the place at the moment. To be fair, that is also the case in the US and European share markets too. And it's easy to panic when you're watching your wealth disappear before your eyes.
However, it's important to take a deep breath. Everything will be OK. In fact, I think there is a lot to be positive about right now. The public health and economic implications of COVID-19 are yet to be fully understood. However, there are signs that China's economy is starting to re-boot after being hit hard by the global pandemic.
The great thing for Fools like you is that now could be a great time to buy. Yes, there are absolutely ASX shares that will struggle from the virus. We're seeing this in the ASX travel, entertainment and hospitality sectors already. However, that doesn't mean that other shares aren't oversold right now.
Where are the best buying opportunities?
There are two approaches that you could take here. I like to look for ASX shares in sectors that are generally defensive or at least non-cyclical to invest in. For me, that could be Telstra Corporation Ltd (ASX: TLS) in the Telecommunications sector or Ramsay Health Care Limited (ASX: RHC) in Heath Care.
The other approach would be to look for businesses that could benefit but have been oversold. Coles Group Ltd (ASX: COL) shares have fallen lower despite the amount of panic selling we've seen across Australia. I wouldn't be surprised to see some bumper quarterly sales numbers from the Aussie supermarket chain in a month or so.
Most importantly, only invest what you can afford to lose. Now could be a once in a generation chance to invest in ASX shares, so back your diversification strategy and make sure you're ready for a market rebound.
