Are we there yet?
Like children on a long road trip, investors have been asking this question constantly throughout an exceptionally turbulent 2022.
While no one — not even the most knowledgeable professional — has the ability to accurately know what will happen in the near future, many experts are urging investors that now is the time to buy.
Tribeca portfolio manager Jun Bei Liu said this week that she would be an aggressive buyer even if US inflation numbers disappoint and the market steps down again.
"I think we're getting very very close to that bottom of the market now," Liu told Switzer TV Investing.
"Remember share markets are always forward-looking. And we're probably, looking at the economic data, [getting] to the worst by early next year."
Liu mentioned three ASX shares that she herself has been buying in the past week:
A growth leader going for cheap
Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its share price halve this year.
But Liu reckons it might be nearing the end of its slide.
"A lot of growth leaders are looking cheap… like Domino's," she said.
"Yes, there's potentially another downgrade to come, because Europe is doing pretty tough. But it is a structural growth business."
The pizza giant also pays out a dividend yield of 2.5%, which also soothes the current valuation uncertainty.
20% discount? Yes, please
The Medibank Private Ltd (ASX: MPL) share price has tumbled 17% over the past couple of weeks after the insurer suffered a highly publicised data breach.
But that's not scaring off Liu.
"Yes, there potentially will be class actions… but for 20% of the market valuation to be wiped out, this does represent some shorter-term opportunity."
Before the security incident, the health insurance giant piqued the interest of many investors, including institutional.
"Remember, this company was rumoured to be taken out not very long ago," said Liu.
"It always had corporate interest and the company's sitting on a really strong balance sheet."
The dividend yield is currently sitting at 4.7%, which makes it that much more attractive.
"This company's got a solid balance sheet, a good brand, in a stable business and has stable market share," Liu said.
"And for the market cap to be down 2%, definitely worth a look."
Far cheaper than US cousins
Liu also likes the outlook for data centre operator NextDC Ltd (ASX: NXT).
"We actually think they are very close to winning more contracts. And if they do, the share price will run away."
Existing shareholders hope she is right, as the stock has lost 31.7% so far this year.
Liu sees similar businesses in the US going through mergers and acquisitions, valued at a far higher level than what NextDC is.
"[NextDC] is a standout buy," she said.
"There's a lot of bad news [priced] in the market, and the valuation will only have to head higher."
