ASX 200 shares are starting to rebound after a tough start to 2020. The S&P/ASX 200 Index (ASX: XJO) is down 13.53% this year with some of the blue-chip shares down considerably more.

So in this up and down share market, here’s where I’d be investing $5,000 today.

Where to invest $5,000 in ASX 200 shares today

I like to stick to the large-cap shares when things are tough. There are some hard times ahead for the ASX banks but I think the National Australia Bank Ltd. (ASX: NAB) share price could be in the buy zone.

NAB shares are down 32.44% this year. This could mean the bank is in trouble, or that it is undervalued.

I think the bank dividend cuts have spooked some investors. There have also been significant impairments as the coronavirus pandemic continues to hit balance sheets.

However, I think the Aussie banks will remain a significant part of our economy. That means ASX 200 bank shares could be undervalued if corporate earnings bounce back quicker than expected.

I also consider CSL Limited (ASX: CSL) to be a good buy right now. The Aussie biotech share closed at $291.00 on Friday afternoon but has since surged to $307.63.

There’s been strong support for the CSL share price around the $290 to $300 mark in recent times. Given the current circumstances, ASX healthcare shares could be a solid buy right now.

Another ASX 200 share worth a look at today is Newcrest Mining Limited (ASX: NCM). Newcrest is a leading ASX gold miner and could benefit from the volatile share market.

Investors tend to flock to gold in times of uncertainty. That’s good news for the Newcrest share price, despite the fact it has already climbed 5.26% higher in 2020.

Foolish takeaway

There are a number of ASX 200 shares that are in the buy zone right now. The volatile market has created buying opportunities for patient investors with a long-term investment horizon.

More reading

• 3 easy rules for building a massive ASX share portfolio
• Where will the Coles share price be in 1 year?
• Tax planning for ASX 200 investors
• Is the BHP share price a buy?
• 5 things to watch on the ASX 200 on Wednesday

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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.

The post Where to invest $5,000 in ASX 200 shares today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2B5fOxK

The Coles Group Ltd (ASX: COL) share price has been a strong outperformer in 2020. While the S&P/ASX 200 Index (ASX: XJO) is down 13.53% this year, Coles shares have climbed 3.91% higher.

But if you’re a long-term investor, you’re probably not too worried about the here and now. So, where will the Coles share price be in 1 year?

Where is the Coles share price headed?

It’s clear that the coronavirus pandemic has boosted supermarket sales this year. Even once the panic buying subsided, supermarkets have been busy with Aussies forced to stay home more.

But it’s harder to forecast sales over the next 12 months. I think it looks like we’re headed for a recession in Australia. Now, technically a recession is not necessarily a disaster but it still has the potential to impact the Coles share price.

A recession is simply 2 consecutive quarters of negative GDP growth. In fact, they’re quite common. But I think a 2020 recession will be tough with so many job losses across a number of sectors.

People tend to spend less in times of uncertainty. While the Coles share price benefits from non-cyclical earnings, even supermarkets get hit by Aussies tightening their spending.

That means that we could see lower earnings over the next 12 months. However, I think Coles will continue to be a strong defensive share.

I don’t think we’ll see spectacular Coles share price growth. But if the ASX 200 moves sideways or down over the next year or so, Coles could still outperform.

I like that Coles provides more concentrated exposure than Woolworths Group Ltd (ASX: WOW) following the former’s November 2018 demerger from Wesfarmers Ltd (ASX: WES).

Foolish takeaway

No one knows where the Coles share price is headed in the next 12 months. In my opinion, it will be trading at or near its current $15.42 valuation.

However, it’s important to consider your time horizon. If you’re investing for the next 30 years, what happens this year or next isn’t a huge concern.

More reading

• Tax planning for ASX 200 investors
• 3 exciting ASX growth shares to buy in June
• Is the BHP share price a buy?
• 3 top ASX dividend shares I would buy for income right now
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Wesfarmers Limited, and Woolworths 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.

The post Where will the Coles share price be in 1 year? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2ZLRV8u