Share markets around the world are in a bit of a panic.
Investors are pulling out their money in droves due to fears that central banks can’t raise interest rates to combat inflation without sending us all into a recession.
But as legendary investor Warren Buffett is often quoted as saying, wise investors need to be greedy when others are fearful.
That is, buy up cheap ASX shares to hold for the long run while everyone else is running around like headless chooks.
Here are three such buy suggestions from experts:
Pizza for dinner, anyone?
Perhaps one could argue that as the economy hits a low point, more people will be dining out on fast food rather than the gourmet stuff.
If you believe in that theory, you would agree with Morgans advisor Jabin Hallihan who picked Domino’s Pizza Enterprises Ltd (ASX: DMP) as a buy.
“The fast food giant faces near term challenges of currency headwinds and inflation,” he told The Bull.
“However, the company offers growth opportunities in the key markets of Japan and Taiwan.”
The Domino’s share price has halved since the start of the year.
Hallihan’s team has a price target of $93 for the stock, which is more than 50% higher than the Wednesday closing price of $61.70.
Domino’s shares are somewhat divisive in the wider professional community. According to CMC Markets, six out of 14 analysts recommend it as a strong buy, but seven rate it a hold.
$10 lettuce, anyone?
With food prices skyrocketing due to global shortages triggered by shipping delays and the war in Ukraine, backing agriculture might not be a bad move.
Fat Prophets chief Angus Geddes likes the look of Elders Ltd (ASX: ELD) to take advantage of that angle.
“Elders is leveraged to the buoyant rural sector, and reported a strong 2022 interim result.”
The company, which supplies goods and services to agricultural producers, is seeing demand outstripping supply across its whole catalogue.
“Elders has been winning market share from targeted acquisitions and from tweaks to its strategic positioning.”
Elders shares have dropped about 17% over the past three weeks.
Want to play the pokies, anyone?
While Australians may not gamble as much during an economic downturn, gaming provider Aristocrat Leisure Limited (ASX: ALL) is still a cheap buy in the long run for Hallihan.
“The slot machine maker remains a high quality growth business with long term opportunities,” he said.
“We’re forecasting 16% growth in earnings before interest, taxes and amortisation in the coming year.”
Morgans recommends it as a buy with a target of $43.
That’s about a 30% premium on the Wednesday closing stock price of $33.01.
Most other analysts absolutely agree with Hallihan, with 11 of 16 recommending Aristocrat shares as a strong buy on CMC Markets.
Aristocrat shares have lost about a quarter of their value since the start of this year.