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I think that the current market dip is the perfect time to buy some forever shares for your portfolio.

The S&P/ASX 200 Index (ASX: XJO) fell by around 1.6% yesterday and that means lower prices for many of the ASX’s best businesses.

If I get the opportunity to buy a great investment at a cheaper price, I’ll take the market up on that. Not every business is a buy during a market selloff.

But I think these two forever ASX shares could be worth buying during this market volatility:

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

Soul Patts is an investment conglomerate that has been listed since 1903. It’s one of the oldest businesses on the ASX. It has already proved to be a forever share because it has lasted more than a century.

I think it’s one the best businesses on the ASX. It may not have ultra-high profit margins like a tech share. It doesn’t seem to have the type of fast global growth aspirations that Afterpay Ltd (ASX: APT) has. But it’s consistently generating solid results.

When Soul Patts reported its FY20 result for the period to 31 July 2020, it was able to report that its average total shareholder return (TSR) was 5.1% per annum better over five years and 5.2% better per annum over the previous 20 years.

It has a diversified portfolio of listed and unlisted businesses that ranges from telco giant TPG Telecom Ltd (ASX: TPG) to swimming schools. It owns large stakes in other ASX businesses like Brickworks Limited (ASX: BKW) and Australian Pharmaceutical Industries Ltd (ASX: API).

I think Soul Patts is a forever ASX share because the investment house is regularly adding to its portfolio. For example, in FY20 it invested $127.7 million into the agricultural sector at a time of a difficult drought. I think that was the perfect example of how Soul Patts likes to invest with a contrarian style.

The Soul Patts share price has fallen around 5% since 19 October 2020.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Quality businesses can perform well in both good times and bad, in my opinion. That means the share prices and returns of quality businesses can also give more downside protection.

This exchange-traded fund (ETF) is invested in global businesses which rank well on return on equity (ROE), debt to capital, cashflow generation and earnings stability. These are well run businesses that generate good annual profits for shareholders, they don’t have risky balance sheets and are consistently profitable.

What businesses count among the highest quality in the world? Here are the biggest 10 holdings in the portfolio (out of 150): Keyence, Nike, Texas Instruments, Nvidia, UnitedHealth, Novo Nordisk, Facebook, Intuit, Alphabet and L’Oreal.

The above list is certainly high-quality. And the holdings will keep changing as newer businesses build a reputation for quality. I think it’s a forever share because of that constantly-evolving portfolio.

It’s a pretty cheap ETF with a management fee of just 0.35% per annum. That helps keep the net returns stay strong. The returns have been strong in the short-term and since inception. Over the past year the Betashares Global Quality Leaders ETF has delivered a net return of 17.8% per annum. Since inception in November 2018, the ETF has delivered net returns per annum of 19.6%.

The global nature of this portfolio means that it can be invested anywhere in the world. It has investments from countries like Finland, Spain, France and Denmark. I think it’s the type of ETF you could hold for a very long time.

More reading

• Why market crashes are useful for buying ASX dividend shares
• 2 Warren Buffett ASX dividend shares to buy in November
• I’d buy these 2 ETFs for dividends and growth
• 3 important rules to help you build wealth
• Why you should pay attention when management buy (or sell) ASX shares

Motley Fool contributor Tristan Harrison owns shares of 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. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 the market volatility this week has been disappointing, every cloud has a silver lining.

The silver lining in this selloff is the pullback in the share prices of some quality growth shares.

Three ASX growth shares that I would buy after the selloff are listed below:

Altium Limited (ASX: ALU)

The Altium share price is now trading approximately 12% lower than its 52-week high. I think this could make it a good time to buy the electronic design software platform provider’s shares. Especially given its outstanding long term growth potential thanks to its exposure to the rapidly growing Internet of Things and AI markets. These are driving strong demand for its Altium Designer software and also its other businesses such as Octopart and NEXUS.

Appen Ltd (ASX: APX)

Another growth share to buy is this leading developer of high-quality, human-annotated training data for machine learning and artificial intelligence. The Appen share price is currently trading 23% lower than its 52-week high. And while this means it is still trading at a premium to the market average, I believe it is great value considering its growth potential. I’m confident Appen can grow its earnings at a strong rate over the 2020s thanks to its leadership position in a market growing very quickly.

Xero Limited (ASX: XRO)

A final growth share to buy is this cloud-based business and accounting software provider. The Xero share price hasn’t fallen back as much as the rest from its 52-week high. However, a 7% discount to what some investors were willing to pay less than a couple of weeks ago seems like a good deal to me. Especially if you’re planning to make a buy and hold investment. Due to the quality of its platform, its stickiness, and its successful evolution into a full-service small business solution, I believe Xero is well-placed for solid growth over the next decade.

More reading

• Down 4% in 10 days: Is it time to buy ASX 200 shares?
• Why market crashes are useful for buying ASX dividend shares
• These ASX growth shares could be long-term market beaters
• Where to invest $20,000 into ASX shares right now
• 3 quality ASX growth shares to buy in November

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 and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., PUSHPAY FPO NZX, and Xero. The Motley Fool Australia owns shares of and has recommended A2 Milk and Bravura Solutions Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended PUSHPAY FPO NZX 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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It was a very disappointing day of trade for the S&P/ASX 200 Index (ASX: XJO) on Thursday. The benchmark index followed the lead of U.S. markets and dropped 1.6% to 5,960.3 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to rebound.

It looks set to be a better day for the Australian share market after Wall Street rebounded overnight. According to the latest SPI futures, the ASX 200 is poised to open the day 36 points or 0.6% higher this morning. In late trade in the United States, the Dow Jones is up 0.95%, the S&P 500 has risen 1.7%, and the Nasdaq has jumped 2.2%. The latter could be good news for local tech shares like Afterpay Limited (ASX: APT).

ResMed Q1 update.

The ResMed Inc (ASX: RMD) share price could be on the move today when it hands in its first quarter update. Earlier this week, analysts at Macquarie warned that the company’s device revenue could be lower this quarter due to softer than expected ventilator volumes. It expects ResMed to report revenue of US$714 million for the first quarter.

Oil prices continue to weaken

The share market may be rebounding, but the same cannot be said for oil prices which have continued to weaken. This could be bad news for the likes of Beach Energy Ltd (ASX: BPT) and Oil Search Limited (ASX: OSH) on Friday. According to Bloomberg, the WTI crude oil price is down 2.9% to US$36.30 a barrel and the Brent crude oil price is down 3.5% to US$37.75 a barrel. Oil prices are on track to have their worst week since April.

Janus Henderson update.

The Janus Henderson Group CDI (ASX: JHG) share price will be one to watch on Friday. Its US-listed shares dropped lower overnight following the release of its third quarter update. The fund manager reported a 6% increase in assets under management to US$358.3 billion. While this was positive, it was all down to favourable market movements. Janus Henderson recorded net outflows of US$2.9 billion for the quarter.

Gold price lower.

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued end to the week after the gold price softened again. According to CNBC, the spot gold price has dropped 0.5% lower to US$1,869.40 an ounce. This was driven by a strengthening U.S. dollar.

More reading

• Are ASX retail investors ‘dumb money’?
• Buy these 3 ASX stocks that hit a 52-week low during this market meltdown
• Why the Mesoblast (ASX:MSB) share price gained today as the ASX 200 fell
• Down 4% in 10 days: Is it time to buy ASX 200 shares?
• ASX 200 sinks 1.6%, ANZ (ASX:ANZ) reports FY20 result

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 and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., PUSHPAY FPO NZX, and Xero. The Motley Fool Australia owns shares of and has recommended A2 Milk and Bravura Solutions Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended PUSHPAY FPO NZX 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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The stock market crash has caused a number of high-quality businesses to trade at cheap prices. The past performance of the stock market suggests that they offer long-term recovery potential. Over time, this may mean that they significantly outperform other mainstream assets.

As such, now could be the right time to build a diverse portfolio of cheap shares. They could boost your financial prospects and help to bring your retirement date a step closer.

High-quality companies trading at cheap prices

While some shares are deservedly cheap after the market crash, others appear to be undervalued. For example, some companies with sound balance sheets and significant competitive advantages are trading at exceptionally low prices because of weak investor sentiment towards their sector.

Although they may face uncertain operating conditions and weak financial prospects in the short run, over the long term they have the potential to deliver improving profitability. Therefore, now could be an excellent opportunity to buy such companies while they appear to offer wide margins of safety. They could produce impressive capital returns that boosts the performance of your portfolio.

Recovery potential after a market crash

While some share prices have rebounded after the market crash, others continue to trade significantly down year-to-date. History suggests that, over time, the prospects for the wider stock market are relatively positive. After all, the stock market has always produced new record highs after its downturns. In doing so, the share prices of most companies have often made strong gains that produce high capital returns for investors.

Therefore, buying stocks today for their long-term turnaround potential could be a sound move. Risks such as Brexit, the United States election and coronavirus may hold back global stock prices in the short run. But the track record of equity markets suggests that the long-term prospects for stock prices is likely to very positive.

Relative return potential

While the market crash has caused paper losses for many investors this year, the long-term return prospects from shares are higher than other mainstream assets. For example, low interest rates mean that cash and bonds may struggle to offer impressive returns once inflation has been taken into account.

Meanwhile, property investing may offer less scope to obtain undervalued assets due to price rises in the global property market over the past decade. Therefore, on a relative basis, shares appear to offer a more favourable risk/reward investing opportunity.

Of course, shares may not necessarily produce impressive returns in the short run due to the ongoing threat of a second market crash. However, over the long run they have the potential to generate surprisingly high capital returns – especially for those investors who buy and hold high-quality businesses while they are trading at cheap prices.

More reading

• Are ASX retail investors ‘dumb money’?
• Zebit Inc (ASX:ZBT) share price tumbles lower on Q3 update
• Buy these 3 ASX stocks that hit a 52-week low during this market meltdown
• Why the Mesoblast (ASX:MSB) share price gained today as the ASX 200 fell
• Down 4% in 10 days: Is it time to buy ASX 200 shares?

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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Retail ASX investors — meaning ‘small money’ investors like you or I — have often been looked down upon by institutional investors (read fund managers, pension funds and the like) as ‘dumb money’. That’s because small investors tend to do silly things with their share portfolios, such as selling shares in the middle of a market crash, or so the stereotype goes.

But a Firstlinks interview with Gemma Dale, Director of SMSF and Investor Behaviour at nabtrade, the online investing platform of National Australia Bank Ltd (ASX: NAB), sheds some interesting insight on the matter.

First, Ms. Dale notes that retail investors using the nabtrade platform had cash stockpiles at “record highs” in January and February – a period coinciding with global share markets at record highs. Doesn’t sound too dumb to me.

Second, Ms. Dale notes that during March and April (during the share market crash), “clients were buying like mad”, swinging nabtrade’s normal 50/50 buying and selling ratio to between 70/30 and 80/20. Following this period, Ms. Dale notes that June saw some mild profit-taking activity from ASX retail investors, but activity has been “more normal” ever since, albeit with relatively large cash piles on the side, a sign that many retail investors are “not sure that markets will stay at this recovered level”.

Some ASX shares investors have been buying

Interestingly, the article also supplies a table of the 10 most traded ASX shares over the year, sorted by investors’ age.

It tells us that Baby Boomers (those investors born before 1964) were heavily investing in ‘traditional’ blue chip ASX 200 shares, with the big four banks all at the top of the list, accompanied by BHP Group Ltd (ASX: BHP) and Woodside Petroleum Ltd (ASX: WPL). There were also some ‘speculative shares’ like Qantas Airways Ltd (ASX: QAN), Webjet Limited (ASX: WEB) and Zip Co Ltd (ASX: Z1P).

The patterns are largely similar in the Gen X category (born between 1965–1980), with Afterpay replacing Woodside on the top 10 list, and Qantas commanding a higher position.

However, for Gen Y (1981–1994) and Gen Z (1995–2005), a different pattern emerges. NAB shares remined the most purchased stock for both groups (as well as for Gen X and Baby Boomers). However, we see a far greater interest in the speculative shares like Qantas, Zip, Flight Centre Travel Group Ltd (ASX: FLT), Afterpay and Webjet. Interestingly, both Gen Y and Gen Z’s lists also featured exchange-traded funds (ETFs), specifically the Vanguard Australian Shares Index ETF (ASX: VAS), whereas Baby Boomers and Gen X’s list did not.

Ms. Dale commented on this observation:

It’s fascinating that the generations are almost identical, except very young people invest in twice as many ETFs as all other people, at about 12% of trades.

Foolish takeaway

It appears that ASX investors’ love of the big four bank shares did not take a beating in 2020, even though those banks’ share prices did (continuing years of underperformance). Old habits die hard, it seems.

On the whole, it was very encouraging to find that retail investors weren’t making the mistakes they are apparently infamous for during the intense market volatility we saw earlier in the year. That iron law of investing — buy low, sell high — seems to still hold sway.

More reading

• Down 4% in 10 days: Is it time to buy ASX 200 shares?
• $14 trillion investor alliance warns Aussie mining companies
• Here’s what this broker thought of the Afterpay (ASX:APT) Q1 update
• 2 ASX 200 shares poised to rocket when the world reopens
• The Credit Clear (ASX:CCR) share price has rocketed 133% since its IPO this week

Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Flight Centre Travel Group 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 release of a third quarter update on Thursday wasn’t enough to stop the Zebit Inc CDI (ASX: ZBT) share price from dropping lower with the market.

The U.S. based ecommerce company’s shares dropped 3.5% to $1.10.

This means the Zebit share price is now trading 30% lower than its IPO price of $1.58.

What is Zebit?

Zebit is a newly listed ecommerce platform with a built-in buy now, pay later offering (BNPL).

It has a focus on the large (and growing) proportion of the US population (est. 100 million) that is considered to be credit challenged. 

It aims to provide affordable credit for consumers that wouldn’t qualify for credit cards or even for regular BNPL platforms like Afterpay Limited (ASX: APT) or Sezzle Inc (ASX: SZL).

How did Zebit perform in the third quarter?

For the three months ended 30 September, Zebit reported revenue of US$15.35 million and a gross margin of 28.2%.

No figures were provided for the prior corresponding period to compare against. Though, judging by its commentary, I suspect its revenue was down on the third quarter of FY 2019.

Management advised that it “deliberately constrained demand and was much more selective in its underwriting criteria related to customer acquisition and taking new orders during Q3 FY 2020.”

One positive, though, was that these operational tactics resulted in a heavier mix of orders from tenured customers on the platform. This increased the overall quality of its booked revenue.

Which may explain why the third quarter was the first positive EBITDA quarter since incorporation. Though, this didn’t quite lead to its operations being fully profitable. On the bottom line, Zebit posted a net loss after tax of US$0.33 million.

The company also booked a bad debt reserve of 6.26%. This is the proportion of bad debt Zebit expects to take for historical outstanding sales.

What now?

Management notes that in September the company decided to resume operating on a pre COVID-19 business-as-usual basis. It explained that it decided to do this because of the continuing development of its proprietary credit decision models and predictive analytics.

It advised that the switch resulted in an acceleration in orders and new registered users during the month of September.

This is just in time for the company’s busiest quarter. Zebit CEO and Co-Founder, Marc Schneider commented: “H2 has historically accounted for about 65% of Zebit’s total annual revenue, with Q4 being the most material quarter of Zebit’s fiscal year. Q4 contains well known key sales events for consumers, namely the Black Friday / Cyber Monday sales event as well as Christmas trading.”

“The remainder of 2020 will be a busy time for Zebit as we deploy the IPO capital and continue to grow our registered user base across the U.S. and continue to deliver upon our IPO objectives in the most significant quarter of Zebit’s fiscal year,” Mr Schneider concluded.

More reading

• Here’s how Adore Beauty (ASX:ABY) and these new IPOs have fared since listing

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T 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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Several ASX stocks hit a 52-week low during today’s market meltdown. But some of these laggards may represent a good buy for 2021.

I know it’s hard to think about buying stocks after seeing the S&P/ASX 200 Index (Index:^AXJO) tank so dramatically.

The tumble on the ASX is part of a global equity sell-off that’s triggered by resurging COVID‐19 cases in the US and parts of Europe. There’re also worries about next week’s US presidential election.

Why you should buy the dip

Investors are indiscriminately selling stocks as they rush for the exits. This is an opportunity for investors as the factors are temporary and not structural.

You will likely be kicking yourself for not buying during the sell-off when you look back at this period in mid-2021.

There are three ASX stocks that are either at or near their lowest point in a year, if not longer, that I think are value buys.

Don’t miss this boat on this ASX laggard

The first is the Austal Limited (ASX: ASB) share price, which sunk 3.6% to $2.70 today.

Investors are abandoning ship after the shipbuilder issued FY21 revenue guidance of $1.8 billion. This is a little softer than what the market was expecting.

The stock was already taking on water leading up to the guidance update. Some were concerned that if Joe Biden won the White House, the Democrat president would cut military spending like most Democrats do.

But with the Austal share price trading at less than 12 times FY21 earnings per share, Citigroup believes too much bad news is in the share price.

I can’t help but to agree. I don’t think any US president can cut back on military spending when China is flexing its military might.

Talk about killing two birds with one stone – building warships is also a great way to stimulate an economy.

Citi is recommending the stock as a “buy” with a 12-month price target of $4.30 a share.

It’s yield, not growth, that’s key to TLS share price

Another stock scraping a more than one-year low is the Telstra Corporation Ltd (ASX: TLS) share price.

Australia’s largest telco lost a quarter of its value this year to close at $2.70 on Thursday. Fears of a margin squeeze from the latest NBN wholesale pricing plans and lack of growth in mobiles despite 5G are some of the reasons I believe are weighing on the stock.

But just like Austal, I think too much bad news is being priced in. Even if Telstra had to cut its dividend by 12.5% to 14 cents a share, the stock is still yielding 7.4% if franking is included.

Given that the Reserve Bank of Australia looks set to drop interest rates to just 0.1% next week, I think the Telstra share price is looking attractive.

Ready to harvest

Finally, the sagging Nufarm Limited (ASX: NUF) share price is also looking enticing after its 42% fall from grace since January 2020.

The seeds and crop protection group has been hit by a string of disappointments. These includes the class action linking the active ingredient in weed killers to cancer, devastating droughts and slower than expected sales of its new omega-3 enriched seeds.

But I believe these headwinds are transitionary. The drought is no longer an issue, although I recognise the risk from El Nina, which could cause damaging floods.

I also believe that sales of its new seeds will start to accelerate in 2021 and that the stock is looking cheap. With the stock this depressed, I don’t think Nufarm needs a big step change in earnings to rally significantly from here.

More reading

• Why the Mesoblast (ASX:MSB) share price gained today as the ASX 200 fell
• Down 4% in 10 days: Is it time to buy ASX 200 shares?
• ASX 200 sinks 1.6%, ANZ (ASX:ANZ) reports FY20 result
• The Clinuvel (ASX:CUV) share price edges down on Q1 update
• Xplore Wealth share price surged to a 2-year high today on M&A fever

Brendon Lau owns shares of Austal Limited, Nufarm Limited, and Telstra Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited. 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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The Mesoblast limited (ASX: MSB) share price is up 1.6% at $3.15 in close of trade today. The company released its report this morning for the quarter ending 30 September, alongside an update on its lead product candidate remestemcel-L.

Mesoblast’s gains today come as the S&P/ASX 200 Index (ASX: XJO) followed US and European markets lower, down 1.6% at close.

Mesoblast shareholders have endured some major ups and downs this year, with the share price cratering 64% from late January through to 23 March. Since that low, the share price is up 184%, for a year-to-date gain of 54%.

What does Mesoblast do?

Mesoblast develops allogeneic cellular medicines. The company has established a portfolio of commercial products and late-stage product candidates via its proprietary mesenchymal lineage cell therapy technology platform.

Mesoblast’s global intellectual property (IP) portfolio protection extends through to at least 2040 in all major markets. Its cell therapies are planned to be readily available to patients worldwide.

Why is the Mesoblast share price up today?

Investors appear to have taken note of the positive outlook Mesoblast reported for its lead product candidate remestemcel-L. This is intended to treat inflammatory diseases in children and adults, including severe acute respiratory distress syndrome.

The company noted that in September, the US Food and Drug Administration recommended it conduct another randomised study to prove the effectiveness of remestemcel-L.

Mesoblast said it now believes the product could receive accelerated approval as there are no other approved treatments for the life-threatening SR-aGVHD in children under 12. The company expects to meet with FDA officials in November to discuss the potential for accelerated approval, particularly as remestemcel-L could be used to treat respiratory distress associated with COVID-19.

Mesoblast chief executive Dr Silviu Itescu said:

We believe the immunomodulatory properties of remestemcel-L position this potential therapy at the forefront of treatment for severe and life-threatening inflammatory conditions, including COVID-19 acute respiratory distress syndrome (ARDS) and steroid-refractory acute graft versus host disease (SR-aGVHD).

We are pursuing an accelerated approval pathway for remestemcel-L in the treatment of children with SR-aGVHD, and a parallel approval pathway for COVID-19 ARDS if the randomised controlled Phase 3 trial is positive.

The company also reported cash on hand of US$108 million (AU$153 million). It stated it may have access to another US$67.5 million over the next 12 months through its existing financing facilities and strategic partnerships.

With the pandemic likely to see many more people suffering from respiratory issues, positive results from the Phase 3 trial could see Mesoblast’s share price run far higher.

More reading

• Buy these 3 ASX stocks that hit a 52-week low during this market meltdown
• Down 4% in 10 days: Is it time to buy ASX 200 shares?
• ASX 200 sinks 1.6%, ANZ (ASX:ANZ) reports FY20 result
• The Clinuvel (ASX:CUV) share price edges down on Q1 update
• Xplore Wealth share price surged to a 2-year high today on M&A fever

Motley Fool contributor Bernd Struben 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 S&P/ASX 200 Index (ASX: XJO) is having a nasty day today, and indeed a nasty week. At the time of writing, the ASX 200 is down 1.43% to 5,971 points. Over the week so far, it’s down 3.4%, and over the past 10 days, down 4.1%.

So, is this a ‘buy the dip’ opportunity for ASX 200 shares? Or should investors keep their powder dry?

Are ASX 200 shares really cheap today?

Well, despite the dramatic fall we have seen over the past 10 days, ASX 200 shares aren’t actually that low today, judging by the levels we’ve seen in 2020 so far. Remember, it was only on 5 October that we last saw the ASX 200 around today’s levels. And we’re still a ways away from the ASX 200 going under 5,800 points, which it did back at the start of the month.

Even so, today’s levels are still pushing some ASX 200 shares to relatively low levels. Telstra Corporation Ltd (ASX: TLS) is one, trading at $2.70 at the time of writing, very close to the company’s all-time low.

Newcrest Mining Limited (ASX: NCM) is another. Newcrest shares (again at the time of writing) are trading at $29.34 (the lowest levels since June) after falling 4.1% on the back of a mixed quarterly update.

ASX resources shares like BHP Group Ltd (ASX: BHP) are also at relatively low levels. You’d have to go back to May to find the ‘Big Australian’ at the levels we’re seeing today. Ditto with BHP’s compatriot Rio Tinto Limited (ASX: RIO).

Go time or no time?

But aside from these more obvious potential value plays, I don’t think the ASX’s current level should induce an all-out, ‘buy the dip’ mentality. This isn’t a crash, bear market or even a correction yet. And most ASX shares aren’t looking too cheap anyway from where I’m standing.

Growth shares like Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) are still pretty close to record highs. The ASX banks like Commonwealth Bank of Australia (ASX: CBA) aren’t looking too much cheaper than they have been for most of the year. And the ‘big dog’ of the ASX, CSL Limited (ASX: CSL), is still near $300 a share.

Remember, we’re about to head into a period of potentially massive market volatility with the US election just around the corner. If the ASX 200 is going to have a major pullback in the next month or 2, I would be willing to bet it’s going to be because of the election. So, I would personally keep the investing powder dry on this one, unless you have been dying to add one of the companies discussed above to your portfolio.

More reading

• ASX 200 sinks 1.6%, ANZ (ASX:ANZ) reports FY20 result
• $14 trillion investor alliance warns Aussie mining companies
• Here’s what this broker thought of the Afterpay (ASX:APT) Q1 update
• The Clinuvel (ASX:CUV) share price edges down on Q1 update
• Newcrest (ASX:NCM) share price tumbles lower following Q1 update

Sebastian Bowen owns shares of Newcrest Mining Limited and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Xero. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 Down 4% in 10 days: Is it time to buy ASX 200 shares? appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) dropped 1.6% to 5,960 points. The ASX selloff followed on from overseas market declines seemingly because of COVID-19 declines.

Here are some of the highlights from the ASX today:

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

The big four ASX bank announced its FY20 result today. There were some pretty big profit declines.

ANZ’s statutory net profit after tax (NPAT) fell by 40% to $3.56 billion and continuing operations cash profit dropped by 42% to $3.76 billion.

The bank said that the profit decline was primarily driven by full year credit impairment charges of $2.74 billion, which increased because of the impact of COVID-19 and the first impairment of its Asian associates to the tune of $815 million, also due to the pandemic.

ANZ declared a final dividend of $0.35 per share, bringing the full year dividend to $0.60 per share. That amounts to a cut of 62.5% compared to FY19.

The ASX 200 bank’s CET1 capital ratio was almost the same as last year, ending at 11.3% – still unquestionably strong using APRA’s standards.

ANZ CEO Shayne Elliot said: “We could never have forecast 2020, a year that started with devastating bushfires in Australia and unwound with the waves of a pandemic that continues today. While we still cannot predict its course, we remain confident that we can deal with its impacts.

“While our immediate focus has been on assisting customers, we have also taken steps to protect the steps of our shareholders by maintaining our strong capital position, tightly managing costs and bolstering credit reserves, while still managing to pay a prudent dividend without diluting their holdings.”

The ANZ share price fell by 2.4% today.

Hub24 Ltd (ASX: HUB)

Hub was in the spotlight today after coming back to trade from its capital raising and acquisition news.

It is raising around $60 million to fund three acquisitions. It’s going to acquire investment platform provider Xplore Wealth Ltd (ASX: XPL) for $60 million through a combination of cash and new shares.

Hub24 is going to acquire Ord Minnett’s non-custody portfolio administration and reporting service for a $10.5 million upfront consideration.

It’s also going to invest in some Easton Investments Ltd (ASX: EAS) shares which will result in Hub24 owning 40% of Easton.

The total investment is $93 million and it’s expected to add 13% to Hub24’s earnings per share (EPS) in FY22.

The Hub24 share price went up more than 8% today. 

REA Group Limited (ASX: REA)

REA Group has also announced an acquisition today. The real estate tech share is going to take a controlling stake in India’s Elara Technologies. Its shareholding will be between 47.2% to 61.1%.

The total consideration will cost between US$50 million to US$70 million for the ASX 200 share.

Elara is India’s fastest growing digital real estate businesses in terms of audience with brands like housing.com, PropTiger.com and Makaan.com. Whilst Indian listings have been impacted due to COVID-19, Elara has continued to grow its market share.

REA Group CEO Owen Wilson said: “India is an incredibly attractive market and one that provides excellent long-term growth opportunities, while complementing REA’s footprint in Asia and North America. The country is forecast to deliver strong growth over the next decade and continues to experience rapid digital transformation.”

Elara provides a wide range of services including digital advertising and transactions including personalised search, virtual viewing, site visits, home loans and post-sales services.

The REA Group share price fell by 1.2% today.

JB Hi-Fi Limited (ASX: JBH)

The electronics ASX 200 retailer announced its FY21 first quarter trading update today.

JB Hi-Fi said that its total sales growth was 27.3% with comparable sales growth of 27.6%. JB Hi-Fi New Zealand delivered a total sales decline of 2.5%, with a total comparable sales decline of 2.5% as well. The Good Guys managed to grow total sales by 30.9%, with comparable sales growing by the same amount.

The company said that all of its stores located in metropolitan Melbourne opened yesterday.

The JB Hi-Fi share price dropped backwards by 6.2% today.

More reading

• Down 4% in 10 days: Is it time to buy ASX 200 shares?
• The Clinuvel (ASX:CUV) share price edges down on Q1 update
• Xplore Wealth share price surged to a 2-year high today on M&A fever
• Why market crashes are useful for buying ASX dividend shares
• The JB Hi-Fi Limited (ASX: JBH) share price has fallen 5% today

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 Hub24 Ltd. The Motley Fool Australia has recommended Hub24 Ltd and REA Group 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 ASX 200 sinks 1.6%, ANZ (ASX:ANZ) reports FY20 result appeared first on Motley Fool Australia.

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