3 super reasons to buy ASX 200 shares today

Investors are worried about how ASX 200 shares will perform in 2021 but I still think there are good reasons to buy today.

| More on:
woman looking shocked at the watch on her wrist representing whether it is too late to buy the whisper share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Many investors are in two minds about buying ASX 200 shares right now. The March bear market spooked investors and there is a feeling a crash is looming once the government life support is switched off.

It's easy to fall into the trap of market timing. However, I still think there are a few good reasons to buy ASX 200 shares today.

Everyone is waiting for a crash…

Every market commentator seems to know when the market will crash in 2021. But even a broken clock is right twice a day…

Over history, plenty of people have lost more money waiting for an ASX 200 share market crash versus those that invested and lost money in an inevitable correction.

That's because if I invest $100,000 today, and the market appreciates by 10% per annum, I would have $259,374 in 10 years time. Even if the market crashed 50% in 10 years, I would still have $129,687 in my account.

Market timing can be a dangerous game, as it's easy to just sit and watch on the sidelines. I'd rather invest in high-quality ASX 200 shares and come along for the ride.

Where else can I get a return?

While the share market may be scary, there aren't many great alternatives going around.

Interest rates are at all-time lows and potentially pushing towards zero. That means a bank account, term deposit or even many bonds won't offer much yield.

There are still some strong ASX 200 dividend shares on the market like Telstra Corporation Ltd (ASX: TLS) and Coles Group Ltd (ASX: COL). That means I don't really have many options if I don't want to partake in market timing.

Many ASX 200 shares are booming

It's true that we're seeing something of a 'two-speed' economy emerge in 2020. S&P/ASX 200 Index (ASX: XJO) has slumped 7.5% in 2020 but many ASX 200 shares are booming.

Retailers with a strong online presence like JB Hi-Fi Limited (ASX: JBH) have surged in value while tech-focused shares like Afterpay Ltd (ASX: APT) continue to climb.

Not all ASX 200 shares are created equal and its important to think long-term while investing in the short to medium-term.

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

More on Share Market News

A couple sit in front of a laptop reading ASX shares news articles and learning about ASX 200 bargain buys
Share Market News

ASX 200 lifts as RBA keeps interest rates steady

ASX 200 investors were buoyed by the RBA’s interest rate decision.

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Baby Bunting, Bellevue Gold, Cettire, and New Hope shares are rising today

These ASX shares are having a good session. But why are investors buying their shares?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Aussie Broadband, Liontown, Metals Acquisition, and Seek shares are falling

These ASX shares are having a poor session. But why?

Read more »

woman holding her baby and looking at her phone happy at the rising share price
Broker Notes

3 ASX All Ords shares that brokers tip will grow 30% to 40% this year

The experts say these three ASX All Ords stocks have great growth ahead of them.

Read more »

A man stands with his arms crossed in an X shape.
Mergers & Acquisitions

Boral share price falls after rejecting Seven Group takeover

The offer 'undervalues' Boral according to its committee.

Read more »

A businessman hugs his computer and smiles.
Opinions

3 Australian shares to buy and hold forever in your ASX portfolio

I think these three ASX shares can outlive us all.

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Tuesday

A positive session is expected for the ASX 200 on Tuesday.

Read more »

A person sitting at a desk smiling and looking at a computer.
Investing Strategies

The best ASX shares to invest $500 in right now

Creating wealth isn't just for the privileged. Just a few hundred dollars can get you started in stock investing.

Read more »