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ASX 200 shares are at a 100-day high. Is now the time to buy?

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The last few months have been strong for ASX 200 shares. The S&P/ASX 200 Index (ASX: XJO) has surged to a 100-day high of 6,229.40 points as at yesterday’s close. That’s good news for those in the market but what does it mean for those looking to buy?

Why ASX 200 shares are at a 100-day high

The interesting thing right now is there are a few different factors bubbling away in the background. The coronavirus pandemic continues to dominate investor sentiment while monetary and fiscal policy are starting to come to the fore.

Yesterday, the benchmark Aussie index jumped 0.85% or 52.60 points higher thanks to easing Victorian restrictions. Less restrictions is good for the economy and that saw a number of ASX 200 shares like Commonwealth Bank of Australia (ASX: CBA) surge higher.

I think hitting a 100-day high is the good news investors need right now. The March bear market seems like an age ago with strong stimulus and monetary policy measures helping to keep the economy afloat.

The Federal Budget announced in recent weeks also contained some good news for business. That’s especially the case for major infrastructure shares like Lendlease Group (ASX: LLC) given the $10 billion spending boost in the sector.

Similarly, shares like SEEK Limited (ASX: SEK) have been charging higher thanks to big efforts to reduce unemployment.

We’re also starting to see more initial public offerings (IPO) and M&A (merger and acquisition) activity increasing which could be a good signal for the current state of the share market.

All of these factors have helped to push ASX 200 shares to a new 100-day high and momentum could be a key factor heading into the end of the year.

Foolish takeaway

ASX 200 shares are charging higher and that could mean now is a time to buy. I still think the idea of a ‘two-speed’ economy rings true.

That means now is the time to think long-term but buy with short-term policy triggers and potential winners in mind.

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

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SEEK Limited. 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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