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Should you buy the dip in ASX 200 shares in April?

After a horrid run in March which saw the S&P/ASX 200 Index (ASX: XJO) tumble lower, ASX 200 shares are charging back this week. Some shares like Afterpay Ltd (ASX: APT) are up more than 150% in less than a week.

But just because we’re seeing share price gains, that doesn’t mean the worst is behind us. In fact, if the rest of the world is anything to go by, the coronavirus pandemic is just starting here. Trillions of dollars of economic stimulus around the world are certainly helping boost ASX 200 shares higher. However, I wouldn’t say we’re out of the woods just yet in terms of volatility.

With that in mind, could April be the best time to buy the dip in ASX 200 shares?

Should you buy the dip in April?

The ASX 200 is down 20.75% in March, even after this week’s rebound. But I think markets may be jumping the gun a little bit. It’s important to stay calm and invest rationally in times like these, but being overly bullish may not be the best idea.

Personally, I think market timing is incredibly difficult. Even the best in the world rarely get it right. I think that consistently putting money into cheap ASX 200 shares is the best way to make the most of depressed valuations right now. With the coronavirus pandemic peak yet to hit the USA or Australia, I think April could be a buying opportunity.

I believe the stimulus measures should help boost valuations higher. Markets love to see swift and strong responses to economic issues. But this could just be a bull trap, where an extended bear market sees a surge of positivity before the fundamentals hammer them lower. 

Which ASX 200 shares should you buy?

If you’ve already got your personal finances in order, April could be the time to buy. It’s easy to get FOMO when you’re investing, but I wouldn’t panic. Buying with a one or two-week time horizon is just gambling rather than long-term investing. 

I personally like the look of defensive or non-cyclical companies right now. I’d be keeping an eye on Telstra Corporation Ltd (ASX: TLS) and Origin Energy Ltd (ASX: ORG).

ASX 200 shares could be in the bargain bin now, but I think the uncertainty will continue into next month. With a bit of spare cash, you could accelerate your retirement with some great buys in April.

If retirement plans are on your mind at the moment, here are 5 high-quality ASX shares to help put your finances back on track this month.

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Motley Fool contributor Ken Hall owns shares of AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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