The S&P/ASX 200 Index (ASX: XJO) is having a bit of a Goldilocks day and can’t seem to decide whether it thinks ASX shares are too hot, too cold or just right. After open, we saw a surge, followed by a dip and now (at the time of writing) we are sitting pretty flat at 5,978 points.
Regardless of what the ASX 200 does today or tomorrow, there are signs some investors are worried about the current level of the ASX share market, particularly given the ongoing issues surrounding coronavirus and its economic impact around the world.
So if the ASX 200 does crash again, for whatever reason, how would you respond?
Well, personally, I’ll be buying more shares. Here are 3 ASX shares I have my eye on for if the markets tank again in 2020:
An ASX healthcare leader
CSL Limited (ASX: CSL) is one of the top shares on my watchlist for if the ASX 200 tumbles again. I was watching CSL shares like a hawk through the March crash, but the price didn’t really get down to a level I thought was a bargain. Alas, the market rebounded and here we are today. Whilst I don’t think CSL will be able to continue growing at its previous breakneck speeds, I still think this company will make a top, long-term investment. It’s a global leader in the blood medicines and vaccinations space and has an unrivalled Research and Development department.
An ASX dividend beast
WAM Research Limited (ASX: WAX) is a dividend-focused listed investment company (LIC) that I already own shares in. This LIC is still offering a robust starting yield of 7.2% today (with full franking) but during the March crash, the WAM Research share price dropped to 93 cents. At that level, the shares would have offered a starting yield of more than 10%. At those prices, I think WAM Research was a no-brainer for a top income investment. I certainly won’t be wasting a second opportunity to buy shares at those levels if it was presented again.
A payments growth share
Zip Co Ltd (ASX: Z1P) is a buy now, pay later (BNPL) provider that has also seen a strong recovery since the March crash. Back then, Zip shares dipped as low as $1.05 — a long way from their current price of $5.97 (at the time of writing). This may be a volatile share to own, but I couldn’t resist picking up some Zip shares if we retested those levels on the ASX again in 2020.
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Sebastian Bowen owns shares of WAM Research Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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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