Looking for safe ASX shares this November? I wouldn't blame you.
With the markets close to all-time highs and the prices of other assets like gold and Bitcoin (CRYPTO: BTC) highly volatile, it's a strange time to be investing. Throw in the results of last week's American elections, and many investors will probably be wondering what comes next.
Unfortunately, there's no such thing as a 'safe' ASX share. The markets can never be trusted to rationally value any ASX share at a given time. As such, we, as stock market investors, are forced to accept that no matter how safe we think a company might be, the markets might have a different opinion.
Saying all of that, we can still look for 'safer' ASX shares. Any company that has an inelastic earnings base and a strong moat has a better shot at preventing its investors from enduring a permanent capital loss. Here are three ASX shares that I think fit this bill.
3 safer ASX shares worth checking out this November
Transurban Group (ASX: TCL)
Transurban is a unique company on the ASX, and offers investors several attributes that I believe make it one of our safer ASX shares. This toll road operator has a near-monopoly over tolled routes across most of Australia's capital cities, including Sydney and Melbourne.
This gives Transurban a highly predictable and reliable earnings base. The company has signed contracts with state governments, which usually allows it to increase its tolls by at least the rate of inflation every year.
Given that traffic volumes tend to be impervious to the economic cycle, this company has a lot to offer investors looking for a safer investment.
Lottery Corporation Ltd (ASX: TLC)
Next, we have Lottery Corp. As its name suggests, it is a provider of gaming and gambling services. It possesses exclusive licenses to run lotteries and Keno games in most Australian states and territories, many of which span decades.
This, in my view, makes Lottery Corp one of the ASX's safest shares. Australians who regularly buy lottery tickets or play Keno tend to do so in both good economic times and bad, thanks to the allure of a jackpot. Given Lottery Corp has almost no competition in catering to these desires, I believe this company makes for a sound long-term investment.
iShares Global Consumer Staples ETF (ASX: IXI)
Our final share worth a look today isn't really a share but an exchange-traded fund (ETF). This particular ETF allows ASX investors to access a portfolio of global companies that produce essential goods known as consumer staples. These goods include food, drinks, alcohol, tobacco, and household necessities like soap, toothpaste, and dishwashing liquid.
The largest holdings in IXI's portfolio include names like Colgate-Palmolive, Kraft Heinz, Walmart and Coca-Cola.
Demand for these companies' products tends to be very stable, and, like toll roads and lotteries, they are largely impervious to economic maladies like inflation and recessions. That, in my view, makes this ETF one of the safer ASX investments on our market.
