I'm not afraid to invest in shares during this recession.
After the Australian Bureau of Statistics (ABS) confirmed that Australia's economy contracted by 0.3% in the March 2020 quarter, it seems clear that the country will enter a recession when the June 2020 quarter number is revealed. Indeed, Treasurer Josh Frydenberg has said that Australia is in recession today.
Recessions signal that times are tough for many areas of the country. But you wouldn't know it from looking at the S&P/ASX 200 Index (ASX: XJO). It's up another 1.5% today, adding to the previous gains of over the past several weeks.
The country is in the middle of a pandemic-caused recession, but some investors are already looking ahead to the other side. And I think that's what most investors should do too.
What happens in a 12-month period shouldn't necessarily change your long-term thoughts about shares unless it permanently alters their prospects for the foreseeable future. Shares like Nextdc Ltd (ASX: NXT) and Pushpay Holdings Ltd (ASX: PPH) have actually seen their prospects strengthen because of the unfortunate events.
When you look at shares like Wesfarmers Ltd (ASX: WES) you can see the share price is still lower than it was before the coronavirus even with interest rates lower and reliable trading for Bunnings and Officeworks.
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Shares I'm looking to invest in
I have been investing throughout the market selloff and I'll be continuing to invest in shares during this recession. I bought shares of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) when it was lower. I also bought shares of WAM Microcap Limited (ASX: WMI) and Magellan Global Trust (ASX: MGG) when they were lower.
I'd really like to invest in shares like Altium Limited (ASX: ALU) and MFF Capital Investments Ltd (ASX: MFF) if they were to fall back in value again. The strength of the Australian dollar makes me want to buy shares which generate earnings from America.
But for now I've got my eyes on mostly Australian shares because of how much of a better position the country is in terms of the coronavirus as well as things like a strong iron ore price and less people on jobkeeper.
