ASX 200 shares are under pressure again after a fourth straight day of losses. The S&P/ASX 200 Index (ASX: XJO) is now down 7.2% since last Wednesday’s close.
That means there could be some great bargains in the current market. Xero Limited (ASX: XRO), Newcrest Mining Ltd (ASX: NCM) and Coles Group Ltd (ASX: COL) shares are just a few of the top shares that I think can help you prepare in the current market environment.
3 ASX 200 shares to buy in the current market
It’s hard to know how to position for a second market crash at the best of times, let alone in the midst of a pandemic.
I think non-cyclical earnings and large-cap shares are the key to weathering any storm. Coles shares could fit this bill.
The Coles share price rocketed higher in February and March when the first coronavirus restrictions kicked in. While I don’t think we’ll see the same level of panic buying again in 2020, Coles earnings could still be solid.
That’s especially the case given times are tough right now and many Aussies are cutting expenses where they can. That could mean less spending at cafes and restaurants and more buying from supermarkets like Coles.
Another ASX 200 share that could be in the buy zone is Newcrest Mining. The Newcrest share price has fallen 1.4% lower in 2020 which is a 13.0% outperformance compared to the ASX 200 benchmark index.
Gold shares tend to do well in a share market crash. Investors flock to the safe-haven asset as a store of value when ASX shares are in freefall.
Other than the gold shares, I think tech shares are promising in 2020. Tech shares have been leading the S&P 500 Index higher in the United States and we’ve seen similar on the ASX.
That could mean an ASX 200 tech share like Xero Limited (ASX: XRO) is in the buy zone.
Xero’s accounting software platform is in high demand right now as businesses look to keep a good handle on their finances.
That could mean Xero is a solid hedge with some upside potential in a share market crash.
No one knows if and when another share market crash might occur. Newcrest, Xero and Coles shares are just a couple of the ASX 200 shares that could help to weather the storm in 2020.
However, panic buying and selling of shares also isn’t the answer.
It might be worth sticking to a long-term strategy and riding out the volatility over the coming decades.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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