The ASX share market is jumping around like a rabbit going downhill. In all of this uncertainty, there are some great investments that are trading cheaply, in my view.
There is no rulebook on how this will play out. Is Trump determined to see this through even if there's significant pain in the short term? What's going to happen to global inflation?
You can see why some fearful investors are exiting. But, I think the indiscriminate selling is opening up opportunities for brave investors. I'm going to talk about two investments that seem too cheap to ignore.
Global X Fang+ ETF (ASX: FANG)
Global businesses have taken a bit of a hammering in recent times, particularly businesses on high valuations and ones exposed to global trade. I'm calling this fund an ASX share because we can buy it on the ASX.
Apple is one of those businesses being sold off because of its Asian-based manufacturing base which could be impacted by the tariffs.
Nine other businesses in this exchange-traded fund (ETF) could be impacted by the tariffs to varying levels. Those companies include Microsoft, Netflix, Amazon, Alphabet, Meta Platforms, ServiceNow, Crowdstrike, Nvidia, and Broadcom.
Even if these tariffs persist for years, I'd still call this collective group of businesses cheap because they generate a significant portion of their earnings from overseas. Europe and other places aren't applying tariffs on non-US countries; only the US is. The non-US earnings could help cushion the blow for these companies.
I think these businesses are being too heavily punished, considering their global growth potential and their involvement in various advanced technologies (such as AI, cloud computing, VR, and so on).
The FANG ETF unit price is down 23% since 18 February 2025.
Brickworks Ltd (ASX: BKW)
Brickworks shares have fallen 19% in the past six months, partly due to the challenging economic climate for building products and partly due to worries about tariffs.
But, the ASX share has significant underlying value with its holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares and its 50% ownership of industrial properties. Those assets generate significant cash flow for Brickworks and have real value.
For example, Brickworks' Soul Patts shares are currently worth around $3.25 billion, compared to Brickworks' market capitalisation of approximately $3.5 billion.
At the end of the FY25 first-half result, Brickworks' holding of industrial properties was worth $2 billion. These properties could grow in value from organic rental increases, interest rate cuts, and further warehouse completions.
Those two assets alone are worth far more than Brickworks' market capitalisation, and because of this, the ASX share looks like a bargain.
