Before we start, I would just like to say this isn't an April Fool's prank, despite the headline!
So as we start a new month this April, the stock market has just finished up its worst quarter since 1987. Yes, that includes the 'recession we had to have', the tech wreck, and the GFC.
That tells me that it's a good time to buy ASX shares! The market could go higher from here, and it could go lower. But most ASX shares are still significantly on sale compared to January's share prices, so I don't find any fault with anyone wanting to deploy some funds into the markets today.
So here are two ASX shares I would choose if I wanted to do just that:
Harvey Norman Holdings Limited (ASX: HVN)
The Harvey Norman share price has been smashed in this ASX bear market – down nearly 40% from its mid-February highs. There will be some short-term pain for Harvey Norman in this economic shutdown for sure. But I also think this is a great long-term buying opportunity. You have one of the most successful and experienced Australian retail CEOs in Gerry Harvey. You also have a company that has been through many, many market crashes and recessions in its time and come out the other side.
I also think that new TVs are likely to be in demand as more and more people are forced to stay home. Those $750 cheques are going to be spent on something and Harvey Norman is a popular destination for home entertainment these days!
Coles Group Ltd (ASX: COL)
Coles is another great April Fool's day buy, in my view. This is a business that has probably just had one of the best quarters in its history (including Christmas quarters) – and yet the Coles share price is nearly 13% from its 52-week high we saw in January. Unlike its arch-rival Woolworths Group Ltd (ASX: WOW), Coles doesn't have businesses like Big W and ALH Group (hotels) weighing on its supermarket performance right now, which I think is a further positive for this company today.
Coles is a rock-solid company with a rock-solid dividend yield (3.8% grossed-up on current prices). Former parent company Wesfarmers Ltd (ASX: WES) announced a big sale of Coles shares yesterday, which has pushed the Coles share price down even further. Thus, I think it's a great time for a buy if you're after a defensive, dividend-paying ASX share.
