The coronavirus has rapidly caused a bear market for the ASX.
The decade-long bull market, one of the longest in history, was followed by a fast reverse of those gains. The COVID-19 outbreak has caused a large number of casualties and severe fear for investors & governments alike.
But if you just consider the share market side of things, it seems as though there are plenty of opportunities about. This type of market fall only seems to happen once a decade. And with how low interest rates have gone, the opportunities may quickly vanish.
If you have $3,000 I think you could buy these 3 shares:
Duxton Water Ltd (ASX: D2O)
The water entitlement business has seen its share price fall 17.7% since 21 February 2020, at one point just over a week ago it was down 36% – but since then it has recovered 28.7% from the $1.01 low.
Water demand will remain high if Australia's dry weather continues over the next 12 months. Food companies and supermarkets are among the businesses that are doing okay during this period. The water used to help the agricultural sector grow food will remain integral in this time.
Compared to the post-tax net asset value (NAV) of $1.77 at the end of February 2020, the Duxton Water share price is trading at a 26.6% discount. The discount is even larger compared to the pre-tax NAV, but it's probably safer to focus on the lower post-tax NAV number.
Betashares Asia Technology Tigers ETF (ASX: ASIA)
Asia seems to be the region that is doing the best in testing for and containing coronavirus. The technology businesses in Asia could be some of the best opportunities in the world right now if their earnings aren't going to be affected anywhere near as much as western tech shares.
The top holdings within this exchange-traded fund (ETF) are shares like Alibaba, Tencent and Samsung.
Tech shares are the ones that seem well-placed to service people's needs well whilst more people are staying at home.
Despite the strong control of the coronavirus in Asia, this ETF is still currently down by 9% from the level before the crash.
Altium Limited (ASX: ALU)
I think Altium is one of the best-placed ASX businesses to get through this period. Investors seem to be agreeing with the Altium share price up 22.7% since 23 March 2020.
However, it's still down by 12% since 21 February (and more from its HY20 result). At around $30 I still think it looks like a great long-term buy with how low interest rates have gone. Valuations need to keep interest rates in mind. Who knows how long interest rates will stay very low?
It's exposed to great long-term growth tailwinds like the rise of the 'Internet of Things'.
The strong balance sheet and good cashflow helps investor confidence too.
Foolish takeaway
I think all of these shares could be good buys today. I think Altium is the highest-quality of the three, so I'd probably choose that one with how low interest rates are, but there's no guarantee the market won't have another sharp fall before this is over.
If you have some more money to invest, you should definitely think about these top ASX shares.
