When I make investments, I make them for the long term. I'm simply not interested in jumping in and out of trades.
Recently, I saw an opportunity to buy a couple of ASX shares that I think are cheap at current levels.
Here's why I plan to hold onto these shares for the next decade:
Betashares Nasdaq 100 ETF (ASX: NDQ)
As you can see above, this popular exchange-traded fund (ETF) has lost a disappointing 27% of its value over the last 12 months. This has been driven by a tech selloff on Wall Street's famous NASDAQ-100 Index (NASDAQ: NDX) after interest rates surged higher to combat sky-high inflation.
Higher interest rates not only put pressure on economic growth but they cause the risk-free rate to increase. The latter means that investors seek a better risk/reward when buying stocks, which invariably leads to shares de-rating to lower multiples.
With inflation now showing signs of easing in the United States, I believe the NASDAQ index and this ETF are positioned for a big recovery in the near future. After which, I am confident that the long term is very positive. After all, this ETF includes giants such as Amazon, Apple, Microsoft, and Tesla.
Domino's Pizza Enterprises Ltd (ASX: DMP)
With the Domino's share price down heavily from its highs, I believe this pizza chain operator could prove to be a great long-term investment if buying from current levels.
This ASX share was sold off in 2022 amid concerns over inflationary pressures on the company's margins and consumer spending. While this will likely lead to sub-par performance in FY 2023, I expect these headwinds to be fleeting and remain confident in its long-term prospects.
Particularly given its strong market position and bold expansion plans. The latter will see the company double its footprint in existing markets later this decade. Combined with its long track record of same-store sales growth and potential margin improvements from scale benefits, I believe Domino's could deliver above-average earnings growth from FY 2024 onwards.
Morgans appears to agree and has an add rating and a $90.00 price target on its shares.
