The S&P/ASX 200 Index (Index:^AXJO) is on a fightback! Our share market is clawing back the big loss at the start of the month as investors try to overcome their fear of May.
This month tends to be a weak period for shares and that's how the market adage "sell in May, go away" came about.
But we don't live in normal times and market trends may not apply in this COVID-19 rocked world we live in.
Staying bullish on equities
While the volatility is expected to stay, those that can stomach the vertigo and have a longer investment horizon should keep investing in the market.
The latest interest rate decision from the Reserve Bank of Australia (RBA) today reinforces my view that equities is the best major asset class to generate wealth over the medium-term, if not longer.
If you are wondering what to buy today, top brokers have two suggestions.
Don't worry about dividends
The first is Westpac Banking Corp (ASX: WBC), which was the last to release its first half result during this big bank reporting season.
There's little to like about the profit news with Westpac posting a big drop in earnings and suspending its dividend.
But there is enough of a silver-lining to prompt Credit Suisse to reiterate its "outperform" recommendation on the stock.
This includes the broker's greater confidence around Westpac's provisioning versus peer group and the bank's ability to raise around $4 billion through non-core asset sales to bolster its balance sheet if needed.
The bank is also trading under its book value, and that makes Westpac look cheap. Credit Suisse's price target on Westpac is $17.90 a share.
On an upgrade cycle
Another stock that's worth putting on your shopping list is Monash IVF Group Ltd (ASX: MVF) after its $80 million capital raising, according to Morgans.
The fresh capital injection will allow the in vitro fertilisation (IVF) clinic operator to repay debt and hunt for opportunistic acquisitions.
While its operations had been impacted by the coronavirus shutdown as its facilities are forced to close to help contain the pandemic, the government recently allowed elective surgeries and IVF clinics to restart.
Morgans upgraded the stock to "add" from "hold" with a price target of 63 cents a share.
