The outlook for the world economy has become increasingly uncertain this month following the outbreak of the coronavirus globally.
This has led to the Australian share market dropping so hard it has fallen into a bear market.
Whilst this has understandably sent many investors into safe haven assets such as gold or even cash, I think fortune could favour the brave.
Whilst it is impossible to say that the share market has bottomed, I'm optimistic it is coming close to hitting it.
This could make it a great time to start thinking about which ASX shares you would like to buy when the bear market ends. Three that I would consider buying are listed below:
a2 Milk Company Ltd (ASX: A2M)
One of my favourite buy and hold options is this infant formula and fresh milk company. It has been growing its sales and earnings at a very strong rate over the last five years. This was due largely to the insatiable demand for its infant formula in China and the daigou channel. Pleasingly, Chinese authorities have recently put in place strict regulations, which has led to a sharp reduction in competition from international players. For example, rival Bellamy's has been shut out of the lucrative market since the end of 2018. I expect this, its a2-only focus, and strong brand power to allow it to continue winning market share and growing its earnings strongly over the next decade.
Appen Ltd (ASX: APX)
I think Appen is another great long term option for investors to consider. Appen has worked tirelessly over the last few years to cement its position as the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). It now has expertise in more than 180 languages, a global crowd of more than 1 million skilled contractors, and the industry's most advanced AI-assisted data annotation platform. This allows it to provide solutions to the leaders in technology, automotive, financial services, retail, manufacturing, and governments worldwide. Given the importance and increased spending on machine learning and AI, I believe Appen is well-positioned to deliver further strong growth over the next decade.
Nanosonics Ltd (ASX: NAN)
A final share to consider buying is infection control specialist Nanosonics. Due to the strong growth potential of its trophon EPR disinfection system for ultrasound probes, I believe its shares could be market beaters over the long term. Especially given how the coronavirus outbreak is demonstrating just how important it is to control infections. Another positive is that Nanosonics is aiming to launch several new products targeting unmet needs in the coming years. The first is due to be released in FY 2021 and could give its medium term growth a big boost.
