As far as statisticians are concerned, the benchmark S&P/ASX 200 Index (ASX: XJO) is currently in a coronavirus-triggered bear market following its sharp decline this month.
Normally bear markets will last a year or two but can extend even longer.
However, I think this bear market is very different and feel confident that it will end as soon as the coronavirus crisis passes.
In light of this, I think now is a good time to start thinking about which shares you would like to own when the bear market ends. Three on my watchlist are listed below:
Altium Limited (ASX: ALU)
Altium is a printed circuit board (PCB) design software provider. I think it could be a great long term option due to the Internet of Things boom which is driving increasingly strong demand for its Altium Designer software. It also has other businesses, such as Octopart, that have significant potential and could support the growth of the core business.
Nanosonics Ltd (ASX: NAN)
Nanosonics is a leading infection control specialist and could be a great long term option. It is the company behind the industry-leading trophon EPR disinfection system for ultrasound probes. I expect this product to underpin solid earnings growth over the coming years thanks to its quality, massive market opportunity, and recurring revenues. Another positive is the impending launch of several new products targeting unmet needs.
ResMed Inc. (ASX: RMD)
A final share to consider buying is ResMed. It is a global medical device company which has a focus on the sleep treatment market. Thanks to its industry-leading products and growing addressable market due to the proliferation of sleep apnoea, I expect it to deliver strong earnings growth over the next decade.
