With yesterday's strong start to the short trading week, it's clear that the S&P/ASX 200 Index (ASX: XJO) is on something of a recovery streak. Last month was a shocker for the ASX 200 and ASX shares, with the index losing more than 6% of its value between 7 and 20 March, hitting a two-month low on the latter date.
But more recently, it has been a far more pleasant tale. The ASX 200 has climbed by around 6% since 20 March and has added 1.8% so far during April.
When the markets are in recovery mode after a rough period, it is usually a tie of heightened buying activity. Investors tend to gain confidence when they see others buying shares. This creates a feedback loop of sorts and can help keep markets on a positive trajectory.
But saying that, the ASX 200 still has a long way to go. The index hit its most recent all-time high way back in August 2021. Back then, the ASX 200 climbed above 7,600 points. But it wasn't to last, and before long, the markets were back under 7,500 points.
As it stands today, the ASX 200 index still remains around 4% below its all-time high watermark.
Image source: Getty Images
I'm looking for once-in-a-decade buys right now
So right now, I'm scouring the ASX 200 for once-in-a-decade ASX share opportunities. History tells us that markets tend to go up more than they go down over time. That's why the ASX 200 has never failed to exceed a previous all-time high. And the best companies don't tend to stay at bargain-basement prices for long in a stock market recovery.
Case in point, yesterday saw Telstra Group Ltd (ASX: TLS), Washington H. Soul Pattinson and Co Ltd (ASX: SOL) and Wesfarmers Ltd (ASX: WES) all hit new 52-week highs.
In fact, some companies never get back to the levels they were at previously.
Take Woolworths Group Ltd (ASX: WOW). Woolworths is unquestionably one of the strongest businesses on the ASX. It has entrenched market domination, wide brand recognition and decades of success under its belt. Back in late 2018, the ASX 200 went through a bit of a slump. This saw the Woolworths share price dragged below $24 a share. Yesterday, it was closing in on $40.
I would be surprised if Woolies ever gets back to below $25 a share – it didn't even get near $25 in the COVID crash of 2020.
Thus, that was clearly a once-in-a-decade buying opportunity.
Where are the next ASX 200 winners?
So I'm looking for another opportunity right now, with the markets still away from their all-time high.
It's ASX 200 retail shares that I think present some of the most compelling candidates at present. Harvey Norman Holdings Limited (ASX: HVN) is a great example. Right now, Harvey Norman shares are close to 40% off their 2021 high of over $6 a share. Yet this is still a popular ASX name in Australia and one with a massive dividend yield today.
Adairs Ltd (ASX: ADH), Dusk Group Ltd (ASX: DSK) and JB Hi-Fi Ltd (ASX: JBH) are in a similar boat. I would say the same for Super Retail Group Ltd (ASX: SUL). But investors seemed to have cottoned on that the $8-9 a share levels that this company was trading at last year were a steal. Yesterday, Super Retail closed at $13.20 a share.
I think many of the companies listed above could have similar trajectories going forward. So when you see a once-in-a-decade opportunity on the markets, don't let it slip through your fingers.
