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Time to go all in with ASX shares?

Is it time to go all in with ASX shares?

Investors have been waiting to see a turning point for the share market. Perhaps when the government steps in with strong stimulus? Perhaps when the coronavirus infection growth numbers start slowing down?

Some people now might be fearing that the bottom may have already passed so investors are trying to get in before share prices recover.

Since 23 March 2020 the S&P/ASX 200 Index (ASX: XJO) has gone up 13.5%. It’s still down 28% from the February 2020 highs, but perhaps the worst is over.

Europe’s lockdowns appear to have slowed the growth of infections – the European curve is being flattened.

In Australia the number of cases (in percentage terms) is growing at a much slower rate than it was several days ago. Another good sign.

The Australian government has stepped in with an enormous wage subsidy package to support a huge amount of people’s jobs so they have work to go back to when the economy starts opening up again.

Are the worst of the falls over?

It seems that investor fear of the coronavirus has certainly lessened. Unless the US has a terrible experience, I think the share market has gotten to grips with the short-term problems.

However, it will take more than a month for the problems to flow through to the economic numbers and investors may get a bit nervous again. But no-one knows what’s going to happen with the share market.

I’ve been buying shares throughout this period and I bought some more shares yesterday because I don’t know when the bottom will be, so I want to make sure I’ve invested a lot whilst prices are lower and it’s uncertain which way markets will go. But I do have a bit of dry powder in-case markets do fall again.

I wouldn’t go all in today, but if you can find some good opportunities then I’d put some money into the share market soon.

One of the shares that I’ve been buying during this period, at a very nice discount to its assets, is global listed investment trust (LIT) Magellan Global Trust (ASX: MGG). I still think it’s attractively priced for a buy.

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Motley Fool contributor Tristan Harrison owns shares of MAGLOBTRST UNITS. The Motley Fool Australia has no position in any of the stocks mentioned. 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.