S&P/ASX 200 Index (ASX: XJO) shares have seen plenty of ups and downs this year. Inflation and higher interest rates have surprised and worried investors.
But with all of the declines the market has seen this year, should investors be jumping at the chance to buy into some ASX 200 shares?
Bell Asset Management's chief investment officer and portfolio manager Ned Bell is optimistic. This could mean good things for ASX 200 shares.
Time to be optimistic at these prices?
Talking to the Australian Financial Review, he noted that there are some uncertainties in some areas, along with changes in the economic outlook. He said:
Markets are mechanisms for pricing in what's going to happen in the future, and this year has been the worst imaginable. It's like we've had five years' worth of bad news in one year.
When there's a market drawdown, a crisis, there's always an investment bank – the canary in the coal mine.
It's usually Deutsche, but occasionally Credit Suisse comes from behind. With the volatility we've seen, particularly in the UK, it's inevitable that [there's] some hedge fund or pension fund that's going to blow up.
But to be honest with you, I'm not of the view that there are a huge amount of corporate calamities on the horizon. Global corporates are actually in pretty good shape.
However, he thinks interest rate rises from the US Federal Reserve are starting to have the desired effect. You'd hope so, with many shares down heavily.
Bell said:
I think we're getting to the point where inflation is starting to look better, and you're starting to see a bit more weakness in the jobs market.
I think the Fed will be looking at that and thinking the violent impact of numerous rate rises is starting to have the desired effect. And once the market starts to realise that maybe the Fed is moving into a period whereby they'll be tapping the brakes, not slamming on the brakes, I think that could be a big trigger for a sharp rally.
Are ASX 200 shares an opportunity?
According to reporting by the AFR, Bell is on a "buying spree" and he's seeing good places to put money.
He said that extreme volatility means it's a "phenomenal opportunity for long-term investors in quality companies".
Bell pointed to a number of quality global shares that look good value.
But, I think that there are a number of ASX 200 shares that would also be worth looking at because of their price drops and their long-term prospects.
The Xero Limited (ASX: XRO) share price is down 50% in 2022 but the tech company keeps growing revenue. As well, it's increasing its subscription prices and has a very high gross profit margin.
The Wesfarmers Ltd (ASX: WES) share price has fallen around 26% in 2022, however, the conglomerate is investing in its core businesses like Bunnings and Kmart Group, while also investing in new areas like health and lithium.
Pinnacle Investment Management Group Ltd (ASX: PNI) shares are down more than 45% in 2022, but the company's portfolio of investment managers continues to perform well and Pinnacle recently expanded into Canada.
Finally, the Breville Group Ltd (ASX: BRG) share price has dropped over 40% this year, but the home appliance company is making investments for growth and is expanding geographically.
