ASX shares seem to be in a bull market. What should investors do? The S&P/ASX 200 Index (ASX: XJO) is up another 1% today, it’s back to 6,000 points.

The ASX 200 has risen 32% since 23 March 2020. An incredible run in such a short amount of time. If you’re just thinking ahead to 2030 and beyond then today is probably still a good time to buy shares because plenty of ASX shares are still not back to their February 2020 highs.

The coronavirus is still spreading around the world, particularly in the US and emerging markets like Brazil. ASX shares like BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) are benefiting from the tough conditions mining environment in South America.

ASX bank shares like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) are flying higher. The buy now, pay later sector is going nuts – the share prices of Afterpay Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P), Splitit Ltd (ASX: SPT) and Sezzle Inc (ASX: SZL) are soaring.

Australia certainly has done a better job at managing the spread of the infection as well as limiting the worst of the potential economic damage.

But should ASX share investors keep buying or remain patient?

Some investors may have a regular investment plan into an exchange-traded fund (ETF). If that’s the case, I wouldn’t worry too much about delaying your next ASX share investment.

But investors trying to pick the right shares should continue to be cautious and considered. The RBA has reduced the official interest rate to a very low level. But that doesn’t mean businesses are out of the woods yet. Some businesses may never be the same again. The unemployment rate is still much higher than before COVID-19.

I’ve always said that investors should just focus on whether the potential investment is good value (and ignore the rest of the noise). There aren’t many obvious bargains like there were before a couple of months ago.

Hoping that everything will turn out fine over the six months is not an investment strategy. ASX shares that generate most of their earnings in Australia and New Zealand seem to have an easier path out of this. But ASX shares that rely on growth of the economies of China and the US may yet see a wobble later this year.

I’m being more careful with my ASX share buying, but I do intend to keep investing for the long-term.

More reading

• The 10 shares that significantly move the ASX 200 index
• Telstra shares and 2 other ASX companies to buy in a low-interest rate world
• 3 ASX dividend shares with big yields above 9%
• 3 top ETFs you can easily diversify your portfolio with immediately
• Are Megaport shares the ones to buy and hold beyond 2030?

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has recommended Sezzle Inc. 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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ASX dividend shares like Telstra Corporation Ltd (ASX: TLS) are a valuable asset these days. Even though the Reserve Bank of Australia (RBA) left interest rates on hold this week, we still have rates at record lows.

That means the value of holding cash in the short-to-medium term is negligible and could actually be detrimental to your wealth if you consider the effects of inflation.

That’s why I think ASX shares like those of Rural Funds Group (ASX: RFF), Commonwealth Bank of Australia (ASX: CBA) and Telstra are the best place to put your hard-earned dollars to work if you have a yearning for dividend yield.

Rural Funds shares

Rural Funds is an agriculture-based real estate investment trust (REIT) which owns tranches of Aussie farmland. Productive land is usually a great investment, and so I think Rural Funds is a great business to have some capital go towards.

It currently leases out farmland for several different crops, including macadamias, almonds, cotton, and vineyards. Rural Funds is currently offering a trailing dividend yield of 4.09%, which it aims to increase by 4% annually.

CommBank shares

CommBank isn’t the first ASX dividend share that comes to mind for strong income in 2020. All 3 of the other big 4 ASX banks have delivered substantial dividend cuts in 2020 – or have ‘deferred’ dividend payments altogether. We haven’t yet yeard from CBA on what to expect from its final dividend this year, but it’s almost certain not to come in anywhere near 2019’s level.

Even so, I think this ASX bank is the best of the banking bunch for future dividend potential. It’s unquestionably our strangest bank and will be first in line to benefit from a recovering Australian economy. There might not be much in the way of dividends this year, but I’m far more bullish on 2021 and beyond.

Telstra shares

Telstra is another great dividend share to consider today. This telco giant is the market leader in providing both fixed-line internet services, mobile phones and mobile networks. It’s also set (in my opinion) to become the market leader in the new 5G technology that is set to roll out soon. Internet services are regarded as a ‘need’ rather than a ‘want’ these days – especially with the ‘work from home’ trend we have seen so far in 2020. As such, I view the telco space as very defensive.

The company also has a strong dividend of 16 cents per share that it looks to continue to fund this year. On current prices, that would give Telstra shares a trailing yield of 4.91% – or 7.01% grossed-up with full franking credits.

More reading

• Why I would buy these outstanding ASX 50 shares right now
• Is the CBA share price cheap today?
• 3 high yield ASX dividend shares to buy right now
• ASX 200 jumps 1.8%, Australian headed for recession
• JobMaker is coming. These 3 ASX 200 shares could benefit

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED 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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There’s no denying that ASX shares are starting to look fully priced. But there’s still value to be found as top brokers have just upgraded three to “buy”.

These ASX stocks are part of the S&P/ASX 200 Index (Index:^AXJO), which is on track to chalk up its fourth straight day of gain this week.

No wonder experts are worried about overstretched valuations as the market jumped 32% since hitting the bear market low in March.

While we may not have seen the worst of the economic impact from the COVID-19 pandemic, brokers don’t think you should wait to buy the following stocks.

The right minerals

The Iluka Resources Limited (ASX: ILU) share price jumped 2.4% to $9.01 in after lunch trade after Goldman Sachs upgraded the mineral sands miner to “buy” from “neutral”.

The broker turned bullish following Iluka’s latest market update on its mineral sands and rare earth project pipeline.

Iluka’s attractive valuation, the upside from its demerger of royalty generating MAC asset, improving mineral sands sales and Goldman’s prediction of a zircon supply deficit in 2021 prompted the upgrade.

The broker’s 12-month price target on the stock is $10.10 a share.

Property bounce back

Another stock that’s outperforming today is the Stockland Corporation Ltd (ASX: SGP) after the federal government announced its $688 million HomeBuilder stimulus and Morgan Stanley upgraded the stock.

But the government’s stimulus is only one reason why the broker lifted its recommendation on Stockland to “overweight” from “equal-weight”.

The proposed change to stamp duty and property tax and a faster than expected reopening of retail outlets in malls owned by Stockland are additional factors behind the upgrade.

The broker increased its price target on the stock to $4.30 from $3.10 a share.

On a recovery path

The aluminium-alumina market has been hit by the coronavirus shutdown but the gradual reopening of the global economy is set to drive prices for the commodity higher, according to UBS.

The expected turnaround prompted the broker to upgrade its recommendation on Alumina Limited (ASX: AWC) to “buy” from “neutral”.

This could explain why the Alumina share price jumped 2.9% to $1.69 in late afternoon trade.

“We estimate that ~50% of the alumina industry is loss making at today’s spot price of US$250/t,” said the broker.

“This is unsustainable on a medium- to long-term basis and with costs rising (caustic soda and energy), we believe cost push should support a higher alumina price.”

UBS increased its 12-month price target on the stock to $2.10 from $1.50 a share.

More reading

• Is the Qantas share price a buy?
• 3 large cap shares beating the ASX 200 this year
• Why the Nufarm share price is crashing lower today
• Should you be an ASX bull or bear right now?
• Top brokers name 3 ASX 200 shares to sell today

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