Despite ASX shares being marginally down for the week overall, the S&P/ASX 200 Index (ASX: XJO) closed 1.49% higher during Friday’s trade.
That’s a positive step and is sure to give investors some much-needed confidence in their investments. But the recent volatility has got me thinking about which ASX shares I’d like to buy if we see another bear market.
Here are a couple of top picks that I’d like to pounce on if we see more share price declines in 2020.
2 ASX shares on my buy list for the next bear market
Wesfarmers Ltd (ASX: WES) is one ASX share at the top of my buy list if we see another market crash this year.
One reason I particularly like Wesfarmers right now is due to its strong balance sheet. Wesfarmers already had a strong cash position before bolstering its liquidity even further by selling another of its stakes in Coles Group Ltd (ASX: COL) for $1.1 billion in March.
Wesfarmers is a conglomerate, which means it’s a company that invests in a lot of different industries. Right now, it’s a particularly retail-heavy conglomerate but that may be changing.
If CEO, Rob Scott, and his team are on the hunt for buying opportunities, I’ll be keeping Wesfarmers on my watchlist for the next bear market. Many ASX share investors don’t like to buy conglomerates, preferring to diversify their investments themselves.
However, I think Wesfarmers has the possibility of picking up some strategic investments for good prices in the current market which would boost its value in 2020.
Other than Wesfarmers, I also like the look of National Storage REIT (ASX: NSR).
National Storage REIT specialises in self-storage unit investments and I think this is a good sector to be in right now.
If we see more Aussies changing houses as a result of the coronavirus pandemic, this could be good news for National Storage’s earnings. More housing changes could mean more demand for self-storage services in 2020 and 2021. I feel this makes the ASX REIT share worth a look at given its current value of $1.89 per share.
Foolish takeaway
These are just a couple of the ASX shares I’d like to buy if we see another bear market which results in similar share price falls to those we witnessed in February and March.
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More reading
- How I’d build a $100,000 portfolio for ASX dividend shares
- ASX 200 rebounds 1.5%, Qantas drops on capital raising
- The latest ASX shares to be upgraded by top brokers to “buy”
- Add the WOW factor to your investment portfolio. Why I think the Woolworths share price is a buy
- Why Qantas and this other ASX 200 stock were just downgraded by top brokers
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. 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.
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