The S&P/ASX 200 Index (ASX: XJO) is having a nasty day today, and indeed a nasty week. At the time of writing, the ASX 200 is down 1.43% to 5,971 points. Over the week so far, it's down 3.4%, and over the past 10 days, down 4.1%.
So, is this a 'buy the dip' opportunity for ASX 200 shares? Or should investors keep their powder dry?
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Are ASX 200 shares really cheap today?
Well, despite the dramatic fall we have seen over the past 10 days, ASX 200 shares aren't actually that low today, judging by the levels we've seen in 2020 so far. Remember, it was only on 5 October that we last saw the ASX 200 around today's levels. And we're still a ways away from the ASX 200 going under 5,800 points, which it did back at the start of the month.
Even so, today's levels are still pushing some ASX 200 shares to relatively low levels. Telstra Corporation Ltd (ASX: TLS) is one, trading at $2.70 at the time of writing, very close to the company's all-time low.
Newcrest Mining Limited (ASX: NCM) is another. Newcrest shares (again at the time of writing) are trading at $29.34 (the lowest levels since June) after falling 4.1% on the back of a mixed quarterly update.
ASX resources shares like BHP Group Ltd (ASX: BHP) are also at relatively low levels. You'd have to go back to May to find the 'Big Australian' at the levels we're seeing today. Ditto with BHP's compatriot Rio Tinto Limited (ASX: RIO).
Go time or no time?
But aside from these more obvious potential value plays, I don't think the ASX's current level should induce an all-out, 'buy the dip' mentality. This isn't a crash, bear market or even a correction yet. And most ASX shares aren't looking too cheap anyway from where I'm standing.
Growth shares like Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) are still pretty close to record highs. The ASX banks like Commonwealth Bank of Australia (ASX: CBA) aren't looking too much cheaper than they have been for most of the year. And the 'big dog' of the ASX, CSL Limited (ASX: CSL), is still near $300 a share.
Remember, we're about to head into a period of potentially massive market volatility with the US election just around the corner. If the ASX 200 is going to have a major pullback in the next month or 2, I would be willing to bet it's going to be because of the election. So, I would personally keep the investing powder dry on this one, unless you have been dying to add one of the companies discussed above to your portfolio.
