If you’ve got $5,000 to invest right now, ASX 200 shares could be a great place to put it. Interest rates are at all-time lows, which means a bank account won’t give you much return right now.
It’s a similar story with bonds, which are trading at or near zero yields as central banks scramble to stabilise the economy.
Property is expensive and $5,000 probably won’t buy you anything in the current market. That leaves us with ASX 200 shares – but which ones are in the buy zone today?
Where to invest $5,000 in ASX 200 shares immediately
If you’ve sorted out your personal finances and have $5,000 to invest, there are a lot of good value ASX 200 shares to buy right now.
I like the look of BHP Group Ltd (ASX: BHP) at the moment. Given the current uncertainty, I think large-cap shares could outperform in 2020 and beyond.
BHP is about as large as it gets with a current market capitalisation of $163 billion. Despite tensions with China, I think iron ore exports could pick up again in the coming months. China is looking to kickstart its economy and infrastructure is a great way to do that.
BHP shares climbed 8.37% higher last week but remain down 11.82% in 2020 at the time of writing.
Another ASX 200 share that could be undervalued is Westpac Banking Corp (ASX: WBC). Westpac shares are down 38.05% this year (at the time of writing), which is lower than its big four banking peers. Westpac has had its fair share of issues, but I think it could be a good relative value play.
ASX bank shares are far from a safe bet right now. However, if the economy picks up quicker than expected, that could be good news for bank earnings and asset quality.
If you’re looking for an undervalued income share, Scentre Group (ASX: SCG) could be worth a look. The Australian real estate investment trust is down 41.51% this year and slashed its dividend, but could be a long-term buy and hold option.
If Scentre doesn’t quite cut it, check out this top ASX dividend share today!
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More reading
- 5 ASX 200 winners and 4 losers of last week
- 3 high yield ASX dividend shares to buy right now
- How $1,000 can be enough to change your money mindset
- How to make a $50,000 passive income with ASX shares
- Have $500 to invest? Then buy these 5 ASX 200 shares immediately
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Where to invest $5,000 in ASX 200 shares immediately appeared first on Motley Fool Australia.
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