ASX shares had a good day yesterday as the S&P/ASX 200 Index (ASX: XJO) closed 4.33% higher. The benchmark index closed at 5,286.80 points and some of the biggest shares on the market saw double-digit gains.
It can be difficult to know whether to buy or sell ASX shares in the current bear market, but investors were clearly more confident in the economy on Monday after signs emerged that Australia may be flattening the coronavirus curve.
Here's a couple of reasons why now could be a once in a lifetime buying opportunity for ASX shares.
Why now is a great opportunity to buy ASX shares
We've seen some ASX sectors prosper in the current coronavirus shut down. Shares in the Aussie supermarkets like Coles Group Ltd (ASX: COL) and their suppliers like A2 Milk Company Ltd (ASX: A2M) have been climbing higher.
We've also seen some companies slash their dividends to preserve cash in the current environment.
But it's worth keeping in mind that the ASX 200 is down nearly 25% in the space of 6 weeks. I view that as a discount sale on some of my favourite ASX shares.
Whether you're after Fortescue Metals Group Limited (ASX: FMG) or Xero Limited (ASX: XRO) for growth, there are some bargain buys right now.
But… we're not out of the woods yet
While markets are down, let's not get ahead of ourselves. It's easy to have FOMO or "fear of missing out" when others are buying and selling in a volatile market. I've been there – you see a 5% swing and think you've missed the boat.
But that's not really the way us Fools invest. I like to buy and hold ASX shares for the long-term, so you have to ignore the day-to-day noise.
It's worth looking at lessons that can be learnt from previous bear markets. During the GFC, the ASX 200 climbed 14% higher between March and May 2008 and hit nearly 6,000 points. However, the market didn't bottom out until March 2009, when it slumped to almost 3,000 points.
Foolish takeaway
The lesson here is that markets are still volatile. While ASX shares might start climbing in the next week or so, there is still a lot of uncertainty in the global economy and any investments should be for the long-term.
