I think the market crash this year has demonstrated why having a balanced and diversified portfolio is very important.

Luckily for investors, diversification isn’t that hard to achieve. Four shares which I think would be good starters are listed below:

Aventus Group (ASX: AVN)

If you don’t have exposure to real estate, then Aventus could be worth considering. It is a retail property company specialising in large format retail parks. Its rental income has a reasonably high weighting towards everyday needs, with homewares, electrical, furniture, bedding and hardware making up the balance. I think this is a good mix and makes it one of the better options in the sector.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF is an exchange traded fund that gives investors exposure to the 500 shares listed on Wall Street’s famous S&P 500 index. This index is home to many of the largest and most well-known companies in the world. This includes Apple, Amazon, Johnson & Johnson, Lockheed Martin, McDonalds, Microsoft, Visa, and Walt Disney.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF is probably as diverse as you can get with shares. This exchange traded fund gives investors exposure to a total of 1,579 of the world’s largest companies listed in major developed countries. Amongst its holdings are the likes of Apple, Nestle, Proctor & Gamble, and Google parent, Alphabet

Woolworths Limited (ASX: WOW)

Finally, I think this conglomerate could be another way to add a bit of diversification to your portfolio. As well as its supermarkets, Woolworths is responsible for a wide range of businesses in different markets. These include Big W, BWS, Dan Murphy’s, and a large number of hotels/pubs. Given the positive outlooks for the majority of these businesses and their defensive qualities, I think Woolworths could be worth considering.

More reading

• Keytone Dairy share price storms 14% higher on new licensing agreement
• The Aussie dollar just hit an 8-week high. Here’s how it affects your ASX shares
• 3 easy rules for building a massive ASX share portfolio
• Where will the Coles share price be in 1 year?
• The ASX 200 just hit an 11-week high. Here are 3 reasons we might be in overvalued territory

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT and Vanguard MSCI Index International Shares ETF. 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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With June almost upon us (insert obligatory comment about how fast the year is flying by), it’s a great opportunity to examine our ASX share portfolios, and particularly our dividend shares.

2020 has been a topsy-turvy year so far for many reasons, with the shifting paradigm for ASX dividend shares part of the story.

Former ASX dividend share stalwarts like the banks are now dividend cutters. ‘Safe’ ASX shares like Transurban Group (ASX: TCL) are leaving income investors hanging.

So if I wanted to top up my portfolio’s income potential this June, here are 3 ASX shares I would use to do so:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

‘Soul Patts’ is one of the best dividend shares on the ASX (in my opinion) and also one of the only shares I trust to keep its dividend flowing this year. In fact, I believe it to be ASX dividend royalty. Soul Patts has paid out a dividend every year of its existence (which goes back to 1903). Not only that, but this company has also increased its dividend payments every year for the last 20 years.

Soul Patts’ large stakes in ASX shares like TPG Telecom Ltd (ASX: TPM) and Brickworks Limited (ASX: BKW) pour cash into the company’s coffers, whilst also giving it broad exposure to the Australian economy. Thus, if I had to choose a dividend share to buy this June, Soul Patts would be at the top of my list.

WAM Research Limited (ASX: WAX)

WAM Research isn’t too far behind though. This is a Listed Investment Company (LIC) that invests in small and mid-cap ASX shares like Tassal Group Limited (ASX: TGR) and City Chic Collective Ltd (ASX: CCX).

This company has proven its know-how, in my view, having delivered an average annual return of 13.4% over the past 10 years. On current prices, WAM Research shares are offering a trailing yield of 6.99%. Although WAX shares usually trade at a premium to their underlying Net Asset Value, I believe this hefty yield more than makes up for this fact.

SPDR S&P Global Dividend Fund (ASX: WDIV)

My last ASX dividend share for June is actually an exchange-traded fund (ETF). WDIV invests in dividend-paying companies from beyond our shores, specifically those which have held or increased their dividends for 10 years or longer. Its holdings are balanced fairly evenly between American, Canadian and Japanese companies, with the United Kingdom, France, Hong Kong and Australia also represented.

Thus, I think this ETF can provide some great global exposure and diversification to an ASX dividend portfolio. Some of its top holdings include Freenet AG, Enagas, Japan Tobacco and our own AGL Energy Limited (ASX: AGL). WDIV offers a trailing yield of 6.01%.

More reading

• What would $50,000 invested in the ASX 200 a decade ago be worth today?
• Have $4,000? Invest in these 4 ASX shares right now
• Should you ever buy into an ASX IPO?
• 3 ASX dividend shares to diversify your income
• 2 ASX shares that are absurdly cheap right now

Motley Fool contributor Sebastian Bowen owns shares of SPDR S&P Global Dividend Fund, WAM Research Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company 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 Cassini Resources Ltd (ASX: CZI) share price has had an impressive run on the market today, up by as much as 13.04% in early morning trade to a new 52-week high of 13 cents.

The small-cap ASX miner provided an encouraging exploration update for its Yarawindah Project this morning, which has gotten investors enthused.

About Cassini Resources

Cassini Resources is a base and precious metals developer and explorer based in Perth. Its flagship site is the West Musgrave Project, the largest undeveloped nickel-copper project in Australia.

It also has a joint venture agreement with S&P/ASX 200 Index (ASX: XJO) mining share OZ Minerals Limited (ASX: OZL), along with its Mt Squires Gold Project and the subject of today’s announcement, the Yarawindah Project.

Why has the Cassini Resources share price bounced?

This morning, Cassini Resources provided an exploration update for its Yarawindah Project. The project is located 100km northeast of Perth and is prospective for nickel, copper, cobalt and platinum group elements (PGE). It’s part of an emerging new nickel-copper-cobalt-PGE province that has been validated by a recent high-grade discovery by Chalice Gold Mines Limited (ASX: CHN).

In today’s release, Cassini Resources detailed encouraging sulphide intercepts at the Ovis Prospect. The first 2 drill holes of the diamond drilling program at the Ovis Prospect have been completed.

Cassini announced that “visually encouraging zones” of nickel and copper sulphides have been intersected over a 10-metre zone in YAD0020 at Ovis.

Meanwhile, a third hole is in progress to test a new electromagnetic (EM) anomaly 1km along strike to the north of Ovis.

In addition, the company has received 200m-spaced infill soil results and partly completed surface EM survey results along the Brassica NW trend.

According to the announcement, “the EM survey has defined a 90m x 65m, 1,500 siemens conductor at the XC06 anomaly”.

In light of these results, the XC06 anomaly is now considered a high-priority target for immediate drill testing. Cassini intends to move the rig to XC06 following completion of the third hole later this week.

The Cassini Resources share price is sitting 4.35% higher for the day at the time of writing, with shares last changing hands at 12 cents.

More reading

• 3 top ASX dividend shares to buy this June
• RBA governor says economy “doing better than was earlier feared”
• Why now could be a better time to buy the underperforming CSL share price
• Here’s why automotive shares could boom post-COVID-19
• These ASX tech shares could take your portfolio to the next level

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. 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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The Governor of the Reserve Bank of Australia (RBA), Philip Lowe has delivered optimistic updates on the state of Australia’s economy today. Dr Lowe was quoted saying it’s “doing a bit better than was earlier feared.”

According to the Australian Financial Review (AFR) reporting, Dr Lowe made the remarks while speaking in a Senate enquiry into the economic impacts of the coronavirus pandemic.

While Dr Lowe describes the unemployment statistics released earlier this month as a “shocking set of numbers”, he is optimistic the worst is behind us.

“[The jobless numbers] weren’t quite as bad as we thought they would be and the data we have seen since suggests there is a bottoming out” the AFR quotes Dr Lowe as stating. Dr Lowe further stated there has been “some pick up in employment in those industries most affected by the virus.”

However, Lowe also referenced it remains important for the government to not withdraw coronavirus stimulus measures (such as the JobKeeper program) prematurely. He said,

“I think it’s very important that we don’t withdraw the fiscal stimulus too early. … Ending the fiscal support could be damaging, but if the economy bounces back [then] tailoring the fiscal support might be the right thing to do.”

One thing investors may find illuminating is the RBA governor’s continuing assurance that Australia won’t follow other countries in introducing negative interest rates.

He stated that “I don’t think negative interest rates work. The package we have so far is working. If we had to do more we could buy more government bonds.”

What do the RBA governor’s comments mean for the ASX?

I think, for ASX investors, there are good sentiments to take from Dr Lowe’s comments. The rally that the S&P/ASX 200 Index (ASX: XJO) is enjoying today can only continue if underpinned by a strong economic recovery. Dr Lowe’s comments suggest this is starting to take shape (although it’s still early days).

The lost prospect of negative interest rates may disappoint some ASX investors. Yet, it’s good news for retirees and any investors with significant cash savings (although it looks like as low-interest rates are still here to stay).

However, in my opinion, Dr Lowe’s comments also imply that we are not out of the woods yet, and the economic situation remains fluid. That’s why I think ASX investors should still be cautious and prudent. I’m not entirely convinced just yet that the current ASX rally is a new dawn (although I hope it is).

Even so, there’s no doubt that Dr Lowe’s comments today are good news for all ASX investors, and indeed all Australians.

More reading

• Why now could be a better time to buy the underperforming CSL share price
• ASX 200 bull market! Why this ASX fundie is getting nervous
• ASX 200 up 2.4%: Blackmores raises $92m, big four banks jump, Nearmap rockets
• The next looming test for the ASX 200 bull market is just round the corner
• Why you shouldn’t fear an ASX share market crash

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. 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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The CSL Limited (ASX: CSL) share price lost its status as the market darling in the latest rally, but this could be a better time to be buying the stock if Citigroup is to be believed.

Shares in the blood products pharmaceutical is trading only just above breakeven during lunch time trade at $288.87 when the S&P/ASX 200 Index (Index:^AXJO) jumped 1%.

Over the past month, CSL lost around 11% of its value while the top 200 benchmark jumped by around 9% on growing optimism that we are overcoming the COVID-19 pandemic.

From hero to zero

This marks a turn in fortunes for CSL. The stock outperformed during the height of crisis thanks to its defensive and dependable earnings while cyclical stocks like big ASX banks crashed due to their exposure to the economic downturn.

But signs that the economy is holding up better than expected triggered a rally in bank shares like Westpac Banking Corp (ASX: WBC) and National Australia bank Ltd. (ASX: NAB). This comes at the expense of CSL.

Too early to declare victory

However, Citigroup reminded investors that the global coronavirus pandemic is far from over with 5.5 million people around the world infected by the virus and more than 350,000 succumbing to it.

And those are only the official figures. The true human cost of COVID-19 is likely to be many times these numbers and things won’t return to the way they were until a vaccine is found.

This also means that the high financial toll to contain the outbreak will continue to weigh on the global economy for quite a while yet.

Vaccine may be years away

“Vaccine development has historically taken up to 10 years,” said Citi.

“Given the social and economic costs of COVID-19, governments, the pharmaceutical industry, regulators and funders are following a new “outbreak” approach to accelerate development in the hope to have a vaccine available sometime within 6-18 months.

“There is a possibility we get multiple vaccines.”

Path back to normality blocked by many obstacles

Medical experts warn that the time to get a proven vaccine is likely to be measured in years and not months. Hoping to find a cure before the end of 2020 might be wishful thinking.

“As the epidemic slows in many countries, it will become more difficult to recruit patients to conduct large scale phase 3 trials,” added the broker.

“Also, if the virus mutates significantly, it could make the development of an effective vaccine more difficult.”

But finding a vaccine is one on half of the battle. Manufacturing enough to inoculate the world’s population is the next big challenge.

Buy the CSL dip

For these reasons, it might be too early to abandon quality defensive stocks like CSL Limited. While Citi has made no changes to its earnings assumptions for the company, it upgraded the stock to “buy” from “neutral” following the pullback in its share price.

The broker’s 12-month price target on CSL is $334 a share.

More reading

• ASX 200 bull market! Why this ASX fundie is getting nervous
• ASX 200 up 2.4%: Blackmores raises $92m, big four banks jump, Nearmap rockets
• The next looming test for the ASX 200 bull market is just round the corner
• Where to invest $10,000 into ASX shares immediately
• Why you shouldn’t fear an ASX share market crash

Brendon Lau owns shares of National Australia Bank Limited and Westpac Banking. 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.

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Automotive shares listed on the ASX could be poised to boom post-COVID-19. The pandemic looks to fuel several positives for the industry. New automotive sales in Australia saw their worst month on record in April, plunging more than 48.5% for the month. The sharp fall in sales marked 25 consecutive months of falling sales in the industry.

Despite the doom and gloom, the coronavirus pandemic could see new automotive sales boom in 2020 and beyond. A recent newsletter from Auscap Asset Management highlighted the concerns of many public transport commuters. With difficulty in maintaining social distancing and the risk of being in contact with asymptomatic people using public transport, consumers may seek alternative transport.

Here are 2 ASX automotive shares that could be poised to boom post-COVID-19.

AP Eagers Ltd (ASX: APE)

The AP Eagers share price tanked approximately 74% from late February to late March in response to the coronavirus pandemic. Since then, shares AP Eagers have bounced more than 175%.

The company released a trading update in late April informing shareholders that its dealerships remained in operation. As Australia’s oldest listed automotive retail group AP Eager remains operational after reducing its cost base and reshaping its business.

AP Eagers also informed the market that they secured $122 million in working capital, putting it in a dominant position over smaller competitors. AP Eagers could also capitalise on buying distressed dealerships with a potential change in consumer behaviour fuelling new car sales.

Carsales.com Ltd (ASX: CAR)

Carsales could also receive a post-COVID boost. The company has a strong balance sheet and operational metrics, in addition to international market exposure. In response to the coronavirus pandemic, Carsales implemented cost-saving initiatives to mitigate financial impact and reduced market activity.

Carsales also waived trade customer’s fixed and variable advertising fees through April, reducing dealer’s short-term operating costs. In response, the Carsales share price has bounced more than 73% from its lows in March.

Foolish takeaway

The coronavirus pandemic will surely change certain consumer behaviours. Recent data from China has reflected growth in traffic levels and weak public transport after the country was released from lockdown. According to data from the China Association of Automobile Manufacturers, new car sales increased 4.4% year on year in April.

If Australian consumers adopt the same behaviour, we could see car sales receive a much-needed boost during 2020 and beyond. Additionally, with more traffic on Australian roads, auxiliary service operators like Transurban Group (ASX: TCL) could also be potential investment ideas for investors.  

More reading

• 3 ASX 200 shares to buy for a Goldilocks-style bounce back
• Is the Transurban share price a buy today?
• 3 quality ASX dividend shares for income investors to buy today
• The one sector that could experience a V-shape COVID-19 recovery
• Which is the best ASX entertainment media share?

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended carsales.com 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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If you’re looking to beat the market over the long term, then I think the tech sector is a great place to look for investment ideas.

This is because there are a decent number of shares in this sector which have the potential to grow their earnings at a rapid rate for many years to come.

But given the growing number of options to choose from, it can be hard to decide which ones to buy.

To narrow things down, I have picked out two tech shares which I think could smash the market throughout the 2020s. They are as follows:

Altium Limited (ASX: ALU)

Altium is a printed circuit board (PCB) design software provider with enormous potential. Virtually every electronic product is constructed with one or more PCB. These boards act as the carrier for everything from electronic components to microchips. As the design of PCBs become more and more complex, devices require sophisticated electronic design automation software such as Altium Designer.

Given the proliferation of electronic devices due to the Internet of Things boom, the future looks very bright for Altium’s award-winning software. Management appears confident that this will be the case. It expects there to be 50,000 software subscriptions at the end of FY 2020. It is then aiming to double this to 100,000 by FY 2025. Given the quality of its product and favourable industry tailwinds, I wouldn’t bet against the company achieving this.

Nearmap Ltd (ASX: NEA)

Nearmap is a leading aerial imagery technology and location data company. It allows businesses to instantly access high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. The beauty of this product is that it means users can conduct accurate virtual site visits without leaving the home or office. This ultimately enables informed decisions, streamlined operations, and, importantly, significant cost savings.

This morning the company revealed that it is on course to achieve annualised contract value of $103 million to $107 million in FY 2020. This is barely even scratching at the surface of the global aerial imagery market which is estimated to be worth US$10.1 billion this year. I believe its quality offering, which is about to be bolstered by the release of Nearmap AI, puts the company in a position to capture a growing slice of this market over the next decade.

More reading

• Why ANZ, Blackmores, IDP Education, & Nearmap shares are racing higher
• Why the Nearmap share price has surged 15% higher today
• ASX 200 up 2.4%: Blackmores raises $92m, big four banks jump, Nearmap rockets
• Why you shouldn’t fear an ASX share market crash
• What would $50,000 invested in the ASX 200 a decade ago be worth today?

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. The Motley Fool Australia owns shares of Altium. 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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