Are we in the middle of a once-in-a-lifetime chance to buy cheap ASX shares?

The Australian share market has been anything but calm in 2026.

Sharp swings have become the norm, with growth stocks leading the declines. Concerns around artificial intelligence (AI) disrupting business models, rising interest rates, high oil prices, and geopolitical tensions have all weighed heavily on sentiment.

For many investors, this kind of environment feels uncomfortable. But history suggests it can also create some of the best opportunities with ASX shares.

Market selloffs often create opportunities

Periods of uncertainty tend to push share prices lower, sometimes well beyond what fundamentals would justify.

We are seeing this play out right now. A number of high-quality ASX shares have fallen significantly despite continuing to grow their earnings and expand their market positions.

This disconnect between price and underlying performance is often where long-term investors find value.

While it is impossible to pick the exact bottom, buying during periods of weakness has historically delivered strong results over time.

Fear is driving short-term decisions

A big part of the current ASX share selloff is being driven by fear rather than fundamentals.

Artificial intelligence is a good example. While there are legitimate questions about how it will impact certain industries, many businesses are also benefiting from it or adapting quickly.

At the same time, rising interest rates are putting pressure on valuations, particularly for growth companies. But these cycles are not new and markets have navigated similar environments before.

When sentiment is negative, investors often focus too heavily on risks and ignore long-term potential.

Quality businesses are trading at better prices

One of the most important things to watch during a selloff is whether the underlying businesses are still performing.

In many cases, they are.

ASX shares like Goodman Group (ASX: GMG), REA Group Ltd (ASX: REA), and Xero Ltd (ASX: XRO) continue to benefit from strong industry positions and long-term growth drivers. Yet their share prices have come under pressure alongside the broader market.

This creates a more attractive entry point for investors who believe in their long-term outlook.

Timing the market matters less than time in the market

Trying to wait for the perfect moment to invest is rarely successful.

Markets can turn quickly, often before the broader outlook improves. By the time confidence returns, many of the best opportunities are gone.

This is why strategies such as gradual investing or dollar-cost averaging can be effective during volatile periods.

By investing consistently, investors can take advantage of lower prices without needing to predict short-term movements.

So, is this a rare buying opportunity?

While it may not be possible to say this is the exact bottom, the current environment does have many of the characteristics seen during past buying opportunities.

High-quality ASX shares are trading below their highs, sentiment is weak, and uncertainty is elevated.

For investors with a long-term mindset, that combination has often led to strong returns over time.

It may not feel like it in the moment, but periods like this are often when the foundations for future wealth are built.

The post Are we in the middle of a once-in-a-lifetime chance to buy cheap ASX shares? appeared first on The Motley Fool Australia.

More reading

• 3 high-quality Australian stocks I would buy and hold for a decade
• Xero shares push higher on deal with AI giant Anthropic
• 5 things to watch on the ASX 200 on Friday
• 1 ASX dividend stock and 1 growth stock I’d buy today
• Why Brazilian Rare Earths, L1 Group, Silver Mines, and Xero shares are dropping today

Motley Fool contributor James Mickleboro has positions in Goodman Group, REA Group, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.