It’s been a wild ride for ASX 200 shares in 2020 as the S&P/ASX 200 Index (ASX: XJO) has gone from bull to bear to bull again.

So if you’ve got $20,000 burning a hole in your pocket right now, here’s a couple of investment ideas to get you started.

Where to invest $20,000 in ASX 200 shares today

I like the look of large-cap dividend shares right now. That means BHP Group Ltd (ASX: BHP) shares could be in the buy zone for me.

The resources sector could be set to boom in the next year or so. Governments are looking to kickstart their economies and infrastructure is a great way to do that. That means steel (and iron ore) could be in high demand which is good for BHP earnings.

If you’re not bullish on BHP, there are other ASX 200 shares I like right now. I think AGL Energy Limited (ASX: AGL) could offer defensive exposure which is valuable in the current market.

AGL shares have fallen sharply in 2020 and still offer a solid dividend yield. While I wouldn’t bank on dividend yields ahead of the August reporting season, I think AGL is well-placed in the Aussie energy market.

There are some headwinds, like lower corporate energy use, but higher residential consumption could help to offset that. If you’re buying for the long-term, I think AGL could also be a major renewables player in the next decade or so.

Finally, I think Telstra Corporation Ltd (ASX: TLS) is another ASX 200 share worth watching. There are certainly challenges facing Telstra this year but we could see the 5G network push accelerated.

More working from home means more reliance on network infrastructure. That could be good news for Telstra as it looks to re-shape itself and re-define its strategy for the decades ahead.

Foolish takeaway

These are just a few of the ASX 200 shares that I like the look of right now. If you have $20,000 to invest, it might be wise to focus on portfolio construction.

No two scenarios are the same which means you have to create a portfolio that suits your needs and investment horizon.

More reading

• 2 ASX shares to buy for strong retirement income
• Top brokers name 3 ASX shares to buy next week
• How you can get very rich with ASX 200 shares
• Can gold really protect your ASX share portfolio?
• How I would build a $100,000 ASX portfolio with ETFs

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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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Last week saw a large number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Adairs Ltd (ASX: ADH)

According to a note out of Goldman Sachs, its analysts have upgraded this homewares retailer’s shares to a buy rating with an improved price target of $2.40. The broker likes Adairs due to its strong online business, solid product offering, and improving supply chain. It also believes its shares are very cheap at 13x forward earnings. I think Goldman Sachs makes some great points and Adairs  could be a good option for investors.

Nearmap Ltd (ASX: NEA)

Analysts at Citi have retained their buy rating and lifted the price target on this aerial imagery technology and location data company’s shares to $2.60. According to the note, the broker was pleased with its market update and was impressed with the resilience of the business. And while it suspects that FY 2021 will be tough, it remains positive on its longer term outlook. I agree with Citi and think Nearmap would be a great buy and hold option.

Telstra Corporation Ltd (ASX: TLS)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating but trimmed the price target on this telco giant’s shares to $4.10. Although the broker expects the pandemic to negatively impacts its earnings, the damage isn’t enough for it to change its bullish stance. It feels its shares are cheap at the current level and continues to forecast a 16 cents per share dividend over the near term. I think Credit Suisse is spot on and would be a buyer of Telstra’s shares.

More reading

• The best ASX blue chip shares to buy in June
• Here’s why it’s vital your ASX shares have a moat
• The TPG share price is up 26.68% in 2020. Too late to invest?
• The Nearmap share price is up 123% in 2 months: Why I think it can go higher
• Brokers name 3 ASX 200 shares to buy right now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. and Telstra 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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The S&P/ASX 200 Index (ASX: XJO) was on form last week and recorded a very strong gain. The benchmark index finished the period at 5755.7 points, 4.7% higher than where it started it.

While the majority of shares on the index pushed higher last week, some climbed more than most.

Here’s why these were the best performing ASX 200 shares over the period:

The Southern Cross Media Group Ltd (ASX: SXL) share price was the best performer on the index by some distance with a 62% gain. This media company’s shares have been incredibly volatile this month and have regularly been among the worst and best performers. Its share price gain this week was so strong the ASX sent it a price query. Southern Cross advised the stock exchange operator that it could not explain why its shares had risen so much.

The Virgin Money UK (ASX: VUK) share price was the next best performer with a gain of 22.9%. Investors were piling into Virgin Money and other banking shares last week. This appears to have been on the belief that they have been oversold during the pandemic. The big four banks all climbed notably higher last week.

The Boral Limited (ASX: BLD) share price wasn’t far behind with a gain of 21% last week. This was despite there being no news out of the building materials company. But with its shares down significantly from their 52-week high, some investors may believe they had fallen into the bargain bin. Boral’s shares are still down 46% from their high, even after this strong gain.

The Austal Limited (ASX: ASB) share price was a strong performer and rose 20.1% over the period. A good portion of the shipbuilder’s gain came on Friday after it upgraded its FY 2020 guidance. Austal advised that its revenue this year will hit ~$2 billion, while its earnings before interest and tax (EBIT) will be no less than $125 million. As a comparison, the company’s previous guidance was for revenue of at least $1.9 billion and EBIT of no less than $110 million.

More reading

• Why this ASX 200 share is up 8% and poised for more explosive growth
• Why Afterpay, Austal, Kogan, & Northern Star shares are charging higher
• ASX 200 down 1.2%: Westpac tumbles, Appen reaffirms guidance, Costa CEO to retire
• The best performing ASX 200 stock today may have more room to climb
• 3 ASX 200 shares to buy for a Goldilocks-style bounce back

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited. 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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