One of the best performers on the Australian share market in 2020 has been the De Grey Mining Limited (ASX: DEG) share price.

Since the start of the year, the gold-focused mineral exploration company’s shares have jumped an incredible 1,645%.

To put that into context, if you had invested $10,000 into its shares at the start of the year, you would have just short of $165,000 today.

Why is the De Grey share price rocketing higher in 2020?

Investors have been scrambling to get hold of the company’s shares this year thanks to a series of positive updates from its Hemi prospect in Western Australia.

Drilling results at the prospect have delivered outstanding results over the last few months and appear to indicate that the company is sitting atop a major resource with the added bonus of having world class infrastructure on its doorstep.

The latter will be a big positive if the prospect becomes operational in the future.

What is the latest news?

Last week its drilling activities revealed further high grades and an expanded footprint at the Aquila Zone within the Hemi prospect.

De Grey Exploration Manager, Phil Tornatora, commented: “The Aquila style gold mineralisation identified in highly altered intrusion 400m to the west is an exciting and significant development as it opens up the overall strike potential of the deposit.”

“The broad high grade mineralisation announced today is particularly encouraging demonstrating the potential to rapidly add to Aquila’s gold endowment,” he added.

Further diamond drilling is coming with the aim of extending Aquila to at least 300 metres below surface along the entire strike of the deposit. Management also notes the potential to extend Aquila a further 400 metres to the west under an interpreted shallow veneer of sediments.

Should you invest?

I’ve been very impressed with its drilling results and I’m confident that De Grey has discovered a real gem.

However, with its market capitalisation now over $1 billion, I think the easy gains are gone. In light of this, I would suggest investors wait until the full resource is known and feasibility studies are undertaken.

More reading

• De Grey Mining share price up 25%, hitting 9-year high

Motley Fool contributor James Mickleboro 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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If you’re looking for new additions to your portfolio in July, then I think the three ASX shares listed below would be great options.

I believe these shares are some of the best the ASX has to offer and could generate market-beating returns for investors in the future.

Here’s why I rate them as five-star stocks:

Appen Ltd (ASX: APX)

The first five-star stock I would buy is Appen. This growing tech company has a team of one million plus crowd-sourced experts, preparing the data for the artificial intelligence (AI) and machine learning models of some of the biggest tech companies in the world. This includes the likes of Facebook, Microsoft, and Apple. And thanks to the acquisition of the Figure Eight business last year, the company now has strong offering for government customers. This is a lucrative market given that the US government has a US$5 billion AI budget and the UK government has a £2.3 billion AI budget. Overall, I believe Appen is well-positioned to continue growing its earnings at an above-average rate for many years to come.

CSL Limited (ASX: CSL)

The second five-star stock to consider buying is CSL. I think the biotherapeutics giant is a fantastic long term investment option for investors. This is due to the company’s world class CSL Behring and Seqirus businesses. These two businesses have leading therapies and vaccines, a growing plasma collection network, and extremely promising research and development pipeline. The latter contains a number of products that have the potential to generate billions of dollars of sales in the future if they are commercialised. I believe this puts the company in a position to continue generating strong returns for investors over the next decade and beyond.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

While not strictly an ASX share, I believe the BetaShares NASDAQ 100 ETF is a five-star option for investors. In fact, this exchange traded fund gives investors access to a large number of companies that are deserving of five-star status. These include Apple, Amazon, Facebook, Microsoft, Nvidia, and Google parent, Alphabet. It also includes a number of up and coming companies that could be stars of the future like online conferencing company Zoom and biotech company Seattle Genetics. I believe the majority of companies on the NASDAQ 100 are well-placed to grow at a quicker than average rate in the future. This could ultimately drive strong returns for investors over the next decade.

More reading

• 10 high quality ASX shares to buy in FY 2021
• Top brokers name 3 ASX shares to buy next week
• How I would construct a $50,000 growth portfolio
• Brokers name 3 ASX 200 shares to buy today
• These 2 ASX shares are perfect for a beginner investor

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 BETANASDAQ ETF UNITS and CSL Ltd. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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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Although there have been a large number of dividend cuts and deferrals this year because of the pandemic, there are still plenty of companies sharing their profits with shareholders.

Three quality shares which continue to perform strongly and look set to pay generous dividends over the next 12 months and beyond are listed below. Here’s why I think they could be great options:

BHP Group Ltd (ASX: BHP)

The first dividend share I would consider buying is BHP. I think the mining giant is a top option right now due to its world class and low cost operations and favourable commodity prices. The latter is particularly the case with iron ore. Thanks to supply disruptions and robust demand, the steel making ingredient is currently commanding a price of over US$100 a tonne. This means BHP’s iron ore operations are generating high levels of free cash flow. The majority of which I expect to be returned to shareholders. I estimate that BHP’s shares currently provide investors with a forward fully franked ~5% dividend yield.

BWP Trust (ASX: BWP)

BWP Trust is a real estate investment trust and the landlord to 68 Bunnings Warehouse stores. While many retail store landlords have been negatively impacted by the pandemic, BWP has continued to collect rent as normal. I believe this is a testament to the quality of its tenancies. And given how the government is supporting the renovation market with additional stimulus, I believe Bunnings is well-placed to continue its growth over the coming years. Overall, I feel this leaves BWP positioned to increase its rental income and distribution at a modest rate for the foreseeable future. At present I estimate that its shares offer a 4.7% FY 2021 distribution yield.

Wesfarmers Ltd (ASX: WES)

A final dividend share to consider buying is Wesfarmers. I’m a big fan of the conglomerate due to its strong businesses and their positive long term outlooks. As I mentioned above, I believe the Bunnings business is well-placed for growth over the medium term thanks to its high quality business model and government stimulus. This is a big boost for Wesfarmers as it is the biggest contributor to the company’s earnings now. Outside this, I expect Wesfarmers to add to its portfolio with value accretive acquisitions in the near term. Combined, this could lead to its earnings and dividends growing at a solid rate over the next decade. At present I estimate that its shares offer a fully franked 3.7% FY 2021 dividend yield.

More reading

• ASX shares vs property: which is a better investment?
• The best placed ASX stocks for the August reporting season
• Safe ASX 200 dividend shares to buy today
• Wesfarmers and one more ASX share I’d buy in another market crash
• Here are 5 rebound shares to buy with $5,000

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers 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 recent share market crash has caused many high-quality dividend shares to trade on low valuations. In the short run, their prices could move lower due to the economic impact of coronavirus. But over the long run, they have the potential to deliver a sound recovery.

Furthermore, with interest rates likely to remain at low levels as policymakers seek to support the economy during an uncertain time, the yields available from dividend shares could make them highly attractive relative to other income-producing assets. This may catalyse their prices over the coming years.

Short-term risks

The world economy is likely to continue to face risks over the coming years that could negatively impact on its growth rate. For example, there could be a second wave of coronavirus in the latter part of 2020. There may also be ongoing geopolitical uncertainty between the US and China that could cause a deterioration in global economic activity.

Despite this, now could be an opportune moment to buy dividend shares. In many cases, investors have factored in the dangers facing the world economy over the medium term. Therefore, long-term investors can take advantage of lower share prices to obtain more attractive risk/reward opportunities. Over time, investor sentiment and the world economy’s growth rate are likely to recover, which may produce rising dividends and improving share price performances.

Recovery potential

Even if there are difficulties ahead for many dividend shares, equities have a solid track record of delivering long-term growth. For example, the FTSE 100 and S&P 500 have recorded annualised total returns that are in the high-single digits since their inceptions. Therefore, even if they experience slower growth for a period of time, improved performance is likely to be ahead.

With a large proportion of the 2  indexes’ returns having been derived from the reinvestment of dividends, purchasing a selection of income shares could prove to be a sound investment for a wide range of investors. They may, for example, offer investment appeal for growth investors as well as those individuals who are seeking to generate a passive income from their portfolio.

Low-interest rates

Furthermore, dividend shares could become increasingly popular over the coming years. Low-interest rates look set to remain in place over the next few years, as policymakers seek to revitalise the economic outlook. This could make the returns on dividend shares seem far more appealing on a relative basis than other income-producing assets such as cash and bonds. Therefore, demand for income shares may increase, which could boost their prices.

As such, now could be the right time to buy a diverse range of dividend shares and hold them for the long run. They may experience some uncertainty in the near term but have the potential to offer a strong total return as the share market recovers.

More reading

• $10,000 invested in De Grey Mining shares in January would be worth $165,000 today
• 3 five-star ASX stocks to buy in July
• 3 fantastic ASX dividend shares to buy next week
• 3 ASX shares to own for the next 10 years
• The 2020 share market crash could help you to get rich and retire early

Motley Fool contributor Peter Stephens 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 coronavirus pandemic has forced individuals and society to adapt in order to function and endure. Here are 3 ASX shares that I think have adapted well to these changes and could prosper in 2020 and beyond.

Woolworths Group Ltd (ASX: WOW)

The essential services provided by Woolworths were highlighted during the pandemic, with the supermarket giant experiencing unprecedented demand. The pandemic also saw consumers grow their appetite for online grocery delivery services.

In order to accommodate the change in consumer behaviour, Woolworths recently doubled its capacity for online grocery deliveries as the company expects $3 billion in e-commerce sales next year. The supermarket giant has also hired an additional 5,000 third-party couriers to strengthen its current fleet of 800 delivery trucks in order to service more delivery orders.

In addition, Woolworths has announced plans to invest approximately $780 million on 2 automated distribution centres in order to streamline its supply chains.

Marley Spoon AG (ASX: MMM)

Despite the financial turmoil caused by the pandemic, it has unearthed a potential gem in Marley Spoon. Marley Spoon is a subscription-based meal-kit provider that has capitalised on changing consumer behaviour as a result of COVID-19. The company delivers fresh ingredients directly to consumers and operates in 3 primary regions: Australia, the US, and Europe. 

Marley Spoon reported that 7.5 million meals were delivered in the first quarter of 2020, resulting in the company’s first ever positive cash flow since its IPO. The company also saw a 46% increase in revenue for the first quarter, with growth accelerated by the coronavirus pandemic.

With many consumers opting for the convenience of services provided by Marley Spoon, the company could be well poised for future growth. As a result, Marley Spoon has already completed a $16.6 million capital raising in order to strengthen its balance sheet and fund continued global expansion.

Kogan.com Ltd (ASX: KGN)

Recently, I wrote an article highlighting how the market capitalisation of Kogan.com is 5 times that of Myer Holdings Ltd (ASX: MYR). In my opinion, this reflects the changing of the guard in the retail sector, as consumers opt for the convenience of online shopping over traditional brick-and-mortar shops.

As at 31 May, Kogan saw its active customer base grow to over 2 million, with 126,000 additional customers joining the company in May. The online retailer also reported a 100% increase in gross sales across the April and May period in comparison with the same period last year and also reported a 130% surge in gross profit for the period.

The demand has also been reflected in the Kogan.com share price, which has surged more than 310% from late March and is currently trading at all-time highs. The online retailer recently completed a $115 million capital raising in order to accelerate future acquisition opportunities. Notable acquisitions made by Kogan include Dick Smith and furniture and homeware retailer Matt Blatt.

Should you buy?

In my opinion, the 3 shares mentioned are well positioned to benefit from changing consumer needs and behaviours. I think a prudent strategy for investors is to compile a watchlist of ASX shares that could also thrive in the next 10 years and wait for a good buying opportunity.

More reading

• The best placed ASX stocks for the August reporting season
• How I would construct a $50,000 growth portfolio
• Add the WOW factor to your investment portfolio. Why I think the Woolworths share price is a buy
• The Kogan share price has quadrupled in value since March: Is it too late to invest?
• Why Kogan, Myer, Orocobre, & Qantas shares are dropping lower

Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Kogan.com ltd. 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 2020 share market crash in March may have caused some investors to adopt a cautious attitude towards equities.

However, buying shares while they are undervalued could be a means of generating high returns in the long run. The share market has a strong track record of recovering from its downturns and is likely to fully recoup its losses from earlier in 2020.

Therefore, now could be the right time to buy a diverse range of shares while many of them continue to offer good value for money even after a recent rebound. They could improve your prospects of retiring early.

Undervalued shares

Even though many share prices have experienced a recovery following the March market crash, a number of shares continue to offer wide margins of safety. Although they may reflect uncertain operating conditions and could be deserved in some cases, many sound businesses appear to be undervalued at the present time.

One reason for this could be that investor sentiment towards equities is weak. Therefore, even if a company has a solid financial position and a bright long-term outlook, it may be trading at a discount to its intrinsic value due to downbeat investor sentiment towards the wider share market.

This could present a buying opportunity for long-term investors. Although shares could continue to be unpopular and undervalued for a period of time, over the coming years they are likely to deliver strong recoveries that could boost your portfolio’s returns.

Past recoveries after a market crash

The share market has a consistent track record of recovery after every market crash it has experienced in its history. For example, in the 21^st century, it has fully recovered from major bear markets such as the tech bubble and the global financial crisis. That’s despite them causing a significant decline in investor sentiment and a recovery seeming very unlikely while they were occurring.

Therefore, a full recovery from the recent share market decline seems to be highly likely over the long run. By positioning your portfolio in high-quality share now, you can maximise your capacity to benefit from a resurging share market as investor sentiment and the performance of the economy gradually improve.

Focusing on risk

Of course, managing risk after a market crash is of great importance to every investor. Not every share will survive what could be a challenging economic period. Therefore, it is crucial to spread your capital across a wide range of businesses that trade in different regions and within multiple industries. This could reduce your exposure to any single business and lower your risk of large losses should your holdings experience poor performances.

Furthermore, buying financially-sound businesses with solid track records of delivering impressive performances during a variety of operating conditions could be a sound move. They may increase your chances of benefitting from rising valuations during a share market recovery and could boost your chances of retiring early.

More reading

• 3 ASX shares to own for the next 10 years
• ASX shares vs property: which is a better investment?
• 2 dirt cheap ASX shares I would buy right now
• 10 high quality ASX shares to buy in FY 2021
• 3 ASX share price trends to watch next week

Motley Fool contributor Peter Stephens 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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Residential property has become an increasingly popular investment over the past few decades, with some investors preferring it over ASX shares. It’s true that many investors have reaped the rewards of steady property price rises in our major cities, especially in Sydney and Melbourne. But what some people tend to forget, however, is that the majority of property investors actually borrow funds in order to purchase those properties.

While there are pros and cons to both approaches, here’s why I gravitate towards investing in ASX shares over property. 

Residential property is actually riskier than it may first appear

One could argue that property price movements have largely been less volatile than ASX shares over the past few decades. However, when you take into account the borrowing or gearing factor, the volatility of residential property as an investment class is actually higher than you might initially think.

Let’s take a typical, residential investment property purchase example to illustrate this point.

Say you purchase an investment property for $600,000 with a $120,000 deposit.

If property prices rise 7% in a year, then your property is now worth $642,000 (on paper). So, theoretically, your $120,000 deposit has increased in value to $162,000, which is a very impressive 35% gain.

However, using the same argument, if property prices go down by 7%, then the value of your initial investment has actually fallen by 35%. A similar fall across the value of ASX shares would be classified as share market crash. And share market crashes actually occur relatively infrequently.

The coronavirus pandemic is leading to a softening of the Australian housing market, driven by challenging economic conditions. Unemployment rates are higher than they’ve been for over a decade, and this could lead to further property price falls over the next 12 months.

Furthermore, residential property purchases also attract additional costs, such as stamp duty and agents’ fees, that are not incurred when buying shares. There are also the ongoing expenses of maintaining your investment property to consider. These include agent management and letting fees, upkeep costs and potential loss of income when your property is vacant.

ASX shares provide better market diversification

Most property investors tend to purchase a very small number of investment properties, often only one or two. That’s putting a large amount of your investment funds into only one or a few baskets. If there is a major correction to house prices in your property’s area due to local factors, this can have a major impact on your overall returns.

In comparison, due to relatively low entry and exit fees, you can more easily spread your risk by purchasing a broad portfolio of ASX shares. Companies like Wesfarmers Ltd (ASX: WES) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) are particularly attractive from a diversification point of view. That’s because they invest in companies covering a wide range of industries and sectors. Other blue chip ASX shares, such as Macquarie Group Ltd (ASX: MQG) and BHP Group Ltd (ASX: BHP), also have the advantage of exposure to a wide range of international markets. This is something that simply cannot be achieved by investing in the local property market.

Foolish takeaway

I do acknowledge that residential property is a good long-term investment. However, on balance, I definitely gravitate more towards investing in ASX shares. For me, the lower fees, easy access to diversification, minimal hassle and superior long-term performance make ASX shares a more attractive investment than property.

More reading

• ASX beware: RBA warns on bank loan deferrals
• 3 great ASX dividend shares for FY21
• The best placed ASX stocks for the August reporting season
• 4 top ASX dividend shares you should never sell
• Safe ASX 200 dividend shares to buy today

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of Wesfarmers 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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While I think the likes of Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO) have outstanding growth potential and deserve to trade at a premium, many investors are understandably uncomfortable buying shares with such high price to earnings multiples.

With that in mind, I have picked out two top shares which I think could be classed as cheap at current levels.

Here’s why I would buy them:

Aristocrat Leisure Limited (ASX: ALL)

I think Aristocrat Leisure is a prime example of growth at a reasonable price. The gaming technology company’s shares are currently changing hands at approximately 21x estimated FY 2021 earnings. I think this offers investors a compelling risk/reward based on its very positive long term growth outlook.

This is because as well as having a pokie machine business which manufactures many of the most sought after machines in the world, it has a growing digital business complementing its growth. The latter business has millions of daily active users playing its games and generating significant recurring revenues. Given its pipeline of releases and the increasing popularity of mobile gaming, I believe this business will underpin strong earnings growth over the next decade.

Telstra Corporation Ltd (ASX: TLS)

Another ASX share which I think is cheap is Telstra. Despite its defensive qualities and the maintaining of its guidance in FY 2020, its shares are down over 12.5% since the start of the year. This leaves them trading at an attractive 19x estimated full year earnings. As a comparison, rival TPG Telecom Ltd (ASX: TPM) is trading at approximately 29x estimated full year earnings. It also means Telstra offers a fully franked 5% dividend yield, which I think is generous in the current environment.

Another reason I think this is good value is its improving outlook. Thanks to the NBN rollout nearing completion, its sizeable cost cutting, and the simplification of its business, I believe a return to growth could be coming possibly as soon as FY 2022. This could make now an opportune time to pick up shares.

More reading

• ASX telco sector: A telecom analyst’s top share pick right now
• How I’d build a $100,000 portfolio for ASX dividend shares
• Is Telstra in for a bruising fight with merged TPG-Vodafone?
• Share price winners and losers of the pandemic
• These are the 4 cheapest ETFs on the ASX

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 Xero. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Appen Ltd. 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 a new financial year on the horizon, now could be an opportune time to consider making some new additions to your portfolio.

To help you on your way, I’ve picked out ten ASX shares which I think would be great options for FY 2021. They are as follows:

a2 Milk Company Ltd (ASX: A2M)

A2 Milk Company is a New Zealand-based infant formula and fresh milk company with a focus on A2-only products. It has been growing at a rapid rate over the last few years thanks to the insatiable demand for its infant formula in China. I expect more of the same in the coming years, which could be supported by new product launches and acquisitions.

Altium Limited (ASX: ALU)

Altium is an industry leading printed circuit board design software provider. While FY 2020 has been impacted greatly by the pandemic, I believe it is worth overlooking its underperformance and focusing on its long term growth potential. This is thanks to its exposure to the Internet of Things boom, which is driving strong demand for its software.

Appen Ltd (ASX: APX)

I think Appen would be a great option. It has a million-plus team of crowd sourced experts preparing data that goes into the artificial intelligence and machine learning models. As these markets are expected to grow materially in the future, I believe it is well-placed for growth.

Bubs Australia Ltd (ASX: BUB)

Bubs is a goat’s milk-focused infant formula and baby food company. I believe it could grow materially in the future thanks to its growing distribution footprint online in China and offline in Australian supermarkets. Another positive is its recent expansion into cow’s milk infant formula.

CSL Limited (ASX: CSL)

I think this biotherapeutics company would be a great long term option. I’m a big fan of CSL due to the increasing demand for immunoglobulins, its world class plasma collection network, growing demand for influenza vaccines, and its lucrative research and development pipeline.

Nanosonics Ltd (ASX: NAN)

I think this infection control specialist is a top option due to its positive long term growth potential. Not only does its trophon EPR disinfection system have a massive market opportunity, the company is launching new products targeting unmet needs. These could take its growth to the next level if they are successful.

Pushpay Holdings Group Ltd (ASX: PPH)

Pushpay is a donor management platform provider for the faith sector. It has been growing at a rapid rate thanks to its leadership in a niche but lucrative market. Management has set itself a target to win a 50% share of the medium to large church market in the future. This represents a US$1 billion revenue opportunity and is many multiples FY 2020’s revenue of US$127.5 million.

REA Group Limited (ASX: REA)

REA Group is a leading property listings company with websites in Europe, Asia, the United States, and of course Australia. While trading conditions are tricky at present, I expect them to ease once the pandemic passes. This could make it worth snapping up its shares with a long term view.

ResMed Inc. (ASX: RMD)

I think this sleep treatment-focused medical device company is well-placed for growth thanks to its industry-leading products and sizeable market opportunity. Management estimates that there could be upwards of 1 billion people impacted by sleep apnoea worldwide. The vast majority of these are undiagnosed.

Xero Limited (ASX: XRO)

Xero is a leading cloud-based business and accounting software provider. It has been growing its customer numbers and recurring revenues at a strong rate for many years. I’m confident there will more of the same over the coming years thanks to the shift to online accounting, its global market opportunity, and high quality product.

More reading

• Top brokers name 3 ASX shares to buy next week
• Where to invest $5,000 into ASX shares in July
• How I would construct a $50,000 growth portfolio
• 3 top ASX shares to buy for growth investors in July
• These exciting ASX shares could help you smash the market in the 2020s

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 Altium, CSL Ltd., Nanosonics Limited, PUSHPAY FPO NZX, and Xero. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO. The Motley Fool Australia owns shares of A2 Milk and Appen Ltd. The Motley Fool Australia has recommended Nanosonics Limited, PUSHPAY FPO NZX, REA Group Limited, and ResMed 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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This week, the reality of our current economic situation caused a fall in many share prices. The Qantas Airways Limited (ASX: QAN) announcement of large-scale layoffs was a bit of wake up call and we also followed United States markets down as concerns over a second wave of COVID-19 started to take hold. In light of these events, here are three ASX share price trends I think are worth keeping an eye on next week, including some tactics to get the most out of them.

Oil and Gas

This week saw the oil price fall, bringing the share prices of all of our large oil and gas companies down with it. However, this is only the start of the challenges facing this sector. The LNG price has recently hit a 25-year low due to slow economic recoveries and modest industrial energy needs. There is also reduced demand for cooling with many regions being cooler than forecast.

This is likely to put more pressure on the share prices of the oil and gas majors. Companies like Woodside Petroleum Limited (ASX: WPL), Santos Ltd (ASX: STO), Origin Energy Ltd (ASX: ORG) and Oil Search Limited (ASX: OSH) have already seen share price slumps this week. I believe this is likely to continue into the coming week. 

This might, however, be a good time to pick up solid companies at a reasonable price. I believe Woodside is still trading at a premium due to many of the large-scale projects it has underway. Origin Energy, however, is worth a closer look in my view. 

Gold miners

In a normal market, companies like Evolution Mining Ltd (ASX: EVN) would be seen as overbought. The company’s price to earnings (P/E) ratio of 33 is way above its 10-year average. So too with other gold miners like Saracen Mineral Holdings Limited (ASX: SAR) and Northern Star Resources Ltd (ASX: NST). However, these are not normal times and this is not a rational market. 

The US dollar gold price is higher than it has been since October of 2012. In Australia, it is also near all-time highs. Personally, I have invested in Bellevue Gold Ltd (ASX: BGL) which is an exploration company. This is despite it too currently trading at an all-time high. 

Regis Resources Limited (ASX: RRL) is another well priced gold mining company likely to benefit from the high gold price. I like this company over the medium term regardless of what happens with the gold price. 

Real estate share prices

After several weeks of trading at very high volumes, the three A-REITs with the most exposure to retail markets have fallen this week. Vicinity Centres (ASX: VCX), Scentre Group (ASX: SCG) and GPT Group (ASX: GPT) saw their share prices edge lower over the course of the week. I do not see this trend reversing anytime soon, particularly with the uncertainty surrounding dividend payouts due to the poor trading conditions. 

I also expect the A-REITs exposed to the housing market, like Stockland Corporation Ltd (ASX: SGP), to follow the retail sector downwards. There has been a lot of commentators pumping up this sector of late. However, personally, I cannot see it reaching anywhere near the levels seen in January with all the uncertainty surrounding the job market. 

I think investors looking for real estate exposure would be better served to consider DEXUS Property Group (ASX: DXS) as it is a pure play commercial real estate company.

Foolish takeaway

I believe these trends are a continuation of issues that have been building for some time. Yet despite the apparent negativity, there are often opportunities to be found. I’m confident it’s still possible to profit from a rising gold price. In addition, commercial real estate is rising while retail is falling. When you see a downward pattern, it always pays to look a little closer to see if any other sector may benefit. 

More reading

• Invest $50 per day in ASX shares to generate a $50,000 passive income
• These were the best performing ASX 200 shares last week
• Here are 5 rebound shares to buy with $5,000
• 5 things to watch on the ASX 200 on Friday
• Why the Scentre share price could rise 88% in 2020

Motley Fool contributor Daryl Mather owns shares of Bellevue Gold Ltd. The Motley Fool Australia has recommended Scentre Group. 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 3 ASX share price trends to watch next week appeared first on Motley Fool Australia.

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