Yesterday was another good day for ASX shares as the S&P/ASX 200 Index (ASX: XJO) closed 1.64% higher at 5,407.10 points. That's the second consecutive day of gains for the Aussie benchmark index and it could be a sign of things to come.
Are ASX shares about to surge higher in 2020?
As much as I might like to, I can't predict the future. Neither can Warren Buffett and nor can you. However, we can try and see what's happening in the share market and choose the best strategy.
ASX shares are starting to bounce back after reaching rock-bottom on 23 March. Now, I wish as much as the next person that I snapped up bargain shares like Pointsbet Holdings Limited (ASX: PBH) back then.
But markets ebb and flow, which means there will be more buying opportunities. The Reserve Bank of Australia (RBA) appears to be quietly confident about the Aussie economy. That could be good news for businesses and the economy as a whole in 2020.
Another big positive for ASX shares in 2020 is the winding back of coronavirus restrictions. Earlier this year it looked like we could be in lockdown for many, many months. That picture is starting to change with talks of opening up the economy and even our borders to countries like New Zealand.
There's no doubt there will be ASX shares that rocket higher from here. In fact, we've already seen some travel shares like Corporate Travel Management Ltd (ASX: CTD) bounce back strongly. The Corporate Travel share price is up 40.24% since 24 April in a positive sign for investors.
Foolish takeaway
No one knows where ASX shares are heading in 2020. There are still plenty of uncertainties ahead, with the RBA expecting unemployment to fall from 10% to 7% by the end of next year.
However, there's light at the end of the tunnel for Australia. As the country looks to plan its emergence from the lockdown, now could be a great time to plan your investment strategy for the years ahead.
