What ASX shares should you invest in during a bull market?
It's a tough question because many shares have performed so strongly. The S&P/ASX 200 Index (ASX: XJO) has risen by 31.8% since 23 March 2020. That's an amazing performance.
But where are we supposed to invest now with many shares now trading close to, or above, their pre-coronavirus highs?
The recovery of some shares has been incredible. The Afterpay Ltd (ASX: APT) share price is above $50. The ASX Ltd (ASX: ASX) share price almost reached $90. The Xero Limited (ASX: XRO) share price briefly went above $90 this week. The Kogan.com Ltd (ASX: KGN) share price is flying high.
The Australian economy continues to recover and we are in a much better position than Europe or the US. The ASX is justifiably on an upward trend. I'd be more concerned with the US share market than ours.
What ASX shares should we invest in?
I think we should take the same approach as we always do with shares. Is it good value today considering its prospects and the potential that things won't work out perfectly?
Vanguard Australian Shares Index ETF (ASX: VAS) could be a decent option considering it's still noticeably lower than before the coronavirus sell off.
There are some shares that I think still look good value considering the global uncertainty regarding the pandemic and the economic effects. I think stocks like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and Brickworks Limited (ASX: BKW) could be great value. Businesses such as Bubs Australia Ltd (ASX: BUB) and Pushpay Holdings Ltd (ASX: PPH) could grow into big businesses.
I also like the idea of some top performing fund managers who are playing it more cautiously like MFF Capital Investments Ltd (ASX: MFF) and Magellan Global Trust (ASX: MGG).
