Why now is a great time to buy ASX shares

It's easy to get spooked out of buying ASX shares right now. Here are a couple of reasons why I think now is the perfect time to invest.

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If you're new to investing, it can be hard to know when it's the right time to buy ASX shares.

2020 has been a crazy year with the coronavirus pandemic, March bear market and oil price war combining to make for a volatile share market.

The S&P/ASX 200 Index (ASX: XJO) has fallen 11.2% lower this year to 5,941.60 points. That might be enough to keep some beginners from buying into the market with fears of further declines.

Here are a few reasons why I think right now is a great time to buy more ASX shares.

Not all ASX shares are falling lower

For all of the struggling parts of the economy, some sectors are doing very well. Technology, gold and online retail shares are all booming right now due to various factors.

That means that you can still be tactical about how and where you invest in ASX shares. For instance, the Afterpay Ltd (ASX: APT) share price has rocketed 159.6% higher in 2020 thanks to booming sales and successful international expansion.

Of course, you still want diversification in your portfolio. The key is to be able to 'tilt' your portfolio in various directions depending on what you think will outperform in the medium-term.

Keep a long-term mindset

I think it pays to have a strategic asset allocation in mind for the long-term with the flexibility to change your investments in the short-term.

It's easy when you're starting out to focus on the daily fluctuations. I used to do exactly the same – watch the market each day to see how much my investments had changed.

This isn't a great habit for most investors. I find that it just made me stress about the losses without adding anything of any benefit.

It's best to keep in mind why you are investing in ASX shares for the first place. Over a 10+ year timeframe, the movements today or tomorrow shouldn't worry you.

Foolish takeaway

The best time to start investing in ASX shares was March, the second best time is today. It's easy to get spooked by online commentators and 'experts' who are predicting a doomsday scenario.

However, I think it's best to trust my own investment strategy and investing for my retirement in the decades ahead.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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