The ASX share market is being hit by a wave of investor selling as the market adjusts to what's going on with US tariffs. The Trump administration is charging a tariff of at least 10% on almost every product from almost every country, including China, the EU, and others.
While uncertainty is unsettling, the volatility is opening up a number of opportunities for investors to buy ASX shares at the best prices this year.
We can't control what share prices do once we invest, however, we can choose what price to buy at.
Investors who have been waiting for better prices now have a chance to take advantage in a number of areas.
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ASX mining shares
Some ASX mining stocks like BHP Group Ltd (ASX: BHP) are hitting lows that haven't been seen since 2022. This presents an opportunity to buy ASX mining shares at a cheap price.
In the last six months, BHP shares are down 18%, Rio Tinto Ltd (ASX: RIO) shares are down 10%, and Fortescue Ltd (ASX: FMG) shares are down 25%.
I don't know what China will do in response to the USA's tariffs, but I can't imagine it will idly sit by if the economy falters. Further fiscal stimulation of the economy could occur, as Beijing officials have already done since the US election.
Plus, BHP and Rio Tinto are not as reliant on iron ore (and China) as they used to be, thanks to increased exposure to copper through acquisitions and organic expansions.
Economy and market-sensitive stocks
Some ASX shares that are linked to the local or global economy look like opportunities to me.
I'm referring to areas like funds management businesses and ASX retail shares. I think these stocks have the most room to bounce back because they have fallen further than other areas, such as ASX defensive shares.
Some of the opportunities I'm seeing include Pinnacle Investment Management Group Ltd (ASX: PNI), GQG Partners Inc (ASX: GQG), Accent Group Ltd (ASX: AX1), and Lovisa Holdings Ltd (ASX: LOV).
A few of the best ASX tech shares have also been hit hard, which could be opportunities, such as TechnologyOne Ltd (ASX: TNE) and Siteminder Ltd (ASX: SDR).
Exchange-traded funds
For investors who want to take advantage of the lower prices we're seeing but are not sure where to invest, I suggest putting some money into an exchange-traded fund (ETF).
Firstly, it would ensure that we invested and took advantage of the lower prices. It would also mean getting good levels of diversification.
I'd look to invest in global funds with quality holdings such as the VanEck MSCI International Quality ETF (ASX: QUAL), the Betashares Global Quality Leaders ETF (ASX: QLTY), and the Vanguard Msci Index International Shares ETF (ASX: VGS).
