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If you are new to investing, it is important to quickly build a diversified portfolio of ASX stocks.

Holding at least 15 ASX stocks should reduce the volatility in your portfolio, as well as improve your chances of making money. Here is the growth third of a ready-built ASX stock portfolio to buy now:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

ASIA is on my list because it provides market capitalisation weighted exposure to a geographic location that will be an economic powerhouse long into the future. This diversification helps to balance my portfolio, whilst giving me access to fast growing innovative stocks such as Alibaba and Tencent.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Nasdaq 100 ETF is another foundational pillar of the portfolio along with ASIA. Along with additional geographic diversification, investors get access to some of the fastest growing and most innovative stocks that are changing the world. Personally, my best investments have come from the Nasdaq!

Kogan.com Ltd (ASX: KGN)

Kogan has been an amazing stock to own in 2020. The stock is up 158% year-to-date on the back of amazing results. Although a lot of this growth can be attributed to the COVID-19 pandemic, the long term trend towards and the growth of e-commerce is undeniable. Kogan’s data-led approach puts it in a great position to be a market beater over the long term.

Nanosonics Ltd (ASX: NAN)

Nanosonics is a leader in the disinfection of ultrasound probes. The stock has been a long-term market beater and I think this will continue. Operating with the razor and blade business model, Nanosonics is successfully growing its installed base of Trophon and Trophon 2 machines. Nanosonics can then sell more high margin consumables products and boost profitability.

Resmed Inc. (ASX: RMD)

Resmed is a leader in the treatment of sleep apnea. Sleep apnea is a hugely underdiagnosed condition that can have significant impacts on your quality of life and your health. As the company and physicians educate more of us, I can see a greater adoption of Resmed’s products.

Further, the move into data and internet connected devices should provide optionality in the future.

What about the other 10 shares?

Five ASX shares are not enough to constitute a long-term buy and hold portfolio. Keep an eye out for 5 more ASX growth shares and 5 dividend shares to complete your starter portfolio coming soon.

More reading

• 3 unstoppable ASX shares to hold for the next decade
• I love volatile ASX share market days like today
• 2 high quality ETFs for ASX investors to buy today
• Every bull run has pullbacks. Why today’s share price falls are ‘healthy’
• Why Appen, Kogan, OZ Minerals, & ResMed shares are dropping lower

Lloyd Prout owns shares of BetaShares Asia Technology Tigers ETF, Nanosonics Limited, and ResMed Inc and expresses his own opinions. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF and Nanosonics Limited. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS, Kogan.com ltd, 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.

The post New to investing? ASX growth shares to buy now appeared first on Motley Fool Australia.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This has been quite the history-making year on Wall Street. In no particular order, we’ve witnessed:

• The fastest bear market decline from all-time highs in history (a 34% move lower in the S&P 500 in 33 calendar days).
• The greatest snapback rally in stock market history, with the S&P 500 regaining all of its losses from its bear market low in under five months.
• A brief period of negative West Texas Intermediate crude oil prices.
• Apple Inc (NASDAQ: AAPL) becoming the first U.S. company to top the $2 trillion valuation mark. 

And at the end of August, we added yet another first to the list: electric vehicle (EV) manufacturer Tesla Inc‘s (NASDAQ: TSLA) first stock split.

In fact, over the past month, there hasn’t been a story that’s garnered more attention in the investment community than Apple’s and Tesla’s respective 4-for-1 and 5-for-1 stock splits, which were both enacted before the market opened on Monday, Aug. 31. That could be because Apple and Tesla have respectively added $653 billion and $187 billion in market value since announcing their stock splits.

Although a stock split has absolutely no bearing on a company’s market cap or fundamentals — i.e., it’s entirely cosmetic and designed to raise or lower a company’s share price and shares outstanding — you certainly wouldn’t know it by looking at Apple’s and Tesla’s recent performance.

With these splits now in the rearview mirror, here are four important takeaways that could dictate whether other high-flying stocks follow suit.

1. Stock splits create a strong perception of value

The first lesson we learned from these two stock splits is just how important investor perception can be.

For example, whether you have one share of Tesla at $2,000 or five shares at $400, your total value owned is exactly the same. But psychologically speaking, it’s a lot easier for an investor to come to terms with buying additional shares of Tesla stock at $400 than it is to buy a single share of stock at $2,000. It’s also easier for an investor to gather $400 in spare cash than it is to build up $2,000 in order to buy a share.

Fractional-share investing has helped combat high-share-price bias. However, not all brokerages allow their users to buy fractional shares, including TD Ameritrade, E*Trade, and Vanguard. Thus, for millions of retail investors, adding to Apple or Tesla to their portfolios just became considerably easier.

2. Having a brand name matters

This might go without saying, but being a brand-name company really helps when it comes to stock split appeal. Apple and Tesla are two of the most recognized brands in the States. Many consumers across the country have forged an emotional attachment with one or both of these brands.

Other public companies enacting forward stock splits during August gained little or no traction. For instance, integrated circuits (IC) manufacturer Power Integrations announced a 2-for-1 stock split on July 30, the same day Apple unveiled its 4-for-1 split. Yet, Power Integrations’ stock has declined nearly 10% since its announced split. That’s because it’s a relatively unknown company with no direct consumer presence. It provides its ICs and electrical components to original equipment manufacturers. 

Without a brand name, a stock split is usually a nonevent.

3. Retail investors are almost certainly driving Apple and Tesla higher

We’ve also learned that retail investors have probably been the driving force behind the hoopla and subsequent moves higher in both companies.

How do we know this? A little more than three weeks ago, money managers with over $100 million in assets under management were required to file Form 13F with the Securities and Exchange Commission. These forms provide an under-the-hood look at what the smartest money managers were up to in the most recent quarter. With regard to Apple, money managers were heading for the exit. The total number of shares held by 13F filers declined by close to 140 million (5.2%) from the sequential first quarter. As for Tesla, the number of shares held by 13F filers did increase, but only by approximately 2 million shares (2%).

Understandably, 13F filings have faults. Namely, we’re looking at information that, as of today, is now over two months old. Big money could’ve played a role in the surges of Apple’s and Tesla’s share prices that isn’t yet known or reflected in these SEC filings. But this 13F data suggests that retail investors are behind Apple’s and Tesla’s surging valuations.

4. The market can stay irrational longer than you can stay solvent

Last but not least, we’ve been reminded that irrational stock market or individual equity behavior can have staying power. 

Tesla, for instance, was decried as too pricey by its own CEO, Elon Musk, on May 1. Tesla’s now split-adjusted price on that day was $140. In four months, Tesla’s stock has more than tripled from Musk’s personal call on his company’s valuation, and it’s defied my own repeated arguments that the company is priced for perfection. Tesla was briefly worth more than auto stocks Toyota, Honda, Daimler, Ford, General Motors, Volkswagen, and Ferrari combined, even though Tesla’s only producing around 500,000 EVs a year. Emotional investing is driving this short-term rally.

The same can be said for Apple, which is now valued at close to 35 times forward earnings. Apple has hovered between 10 and 20 times forward earnings over the past decade. It’s suddenly being valued as a services company despite the fact that its fast-growing services segment was responsible for just 19% of its sales through the first nine months of fiscal 2020. 

Neither valuation makes any sense, but both could still head higher.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• ASX 200 Weekly Wrap: Friday crash pulls ASX back below 6,000 points
• Every bull run has pullbacks. Why today’s share price falls are ‘healthy’
• After the crash, is it time to buy this Nasdaq ETF?
• NASDAQ plunges 5%. What next?
• Microsoft, Apple, and Alphabet led the stock market lower on Thursday

Sean Williams 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 Apple and Tesla and recommends the following options: long December 2021 $130 calls on Ferrari. The Motley Fool Australia has recommended Apple. 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 4 things learned from Apple and Tesla stock splits appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Every Monday I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Webjet Limited (ASX: WEB) continues to be the most shorted share on the ASX after its short interest rose to 15%. It appears as though short sellers believe Webjet’s shares are overvalued relative to its earnings potential in the medium term.
• Myer Holdings Ltd (ASX: MYR) has seen its short interest reduce slightly once again to 11%. Some short sellers appear to be closing positions after a recent rebound in the department store operator’s shares. Though, others are sticking around, potentially on the belief that the pandemic will ruin its turnaround plans.
• Speedcast International Ltd (ASX: SDA) has seen its short interest slide to 10.6%. This communications satellite technology provider recently announced a US$395 million equity commitment to complete its chapter 11 recapitalisation.
• Orocobre Limited (ASX: ORE) has seen its short interest rise week on week to 9.3%. Short sellers have been going after Orocobre due to a collapse in lithium prices. This led to it posting a US$67.1 million loss after tax in FY 2020.
• InvoCare Limited (ASX: IVC) has short interest of 9.1%, which is up week on week once again. Short sellers have been increasing their positions since the release of the funerals company’s half year results. InvoCare revealed a sharp decline in profits due partly to COVID-related social distancing restrictions.
• Inghams Group Ltd (ASX: ING) has 8% of its shares held short, which is down sharply week on week. It appears as though short sellers may believe the worst is over for Inghams now following its full year result. This certainly seems to be the case with its directors, who were buying shares en masse recently.
• CLINUVEL Pharmaceuticals Limited (ASX: CUV) has seen its short interest increase slightly to 7.9%. Last month the biopharmaceutical company’s shares tumbled lower following a disappointing full year result. Short sellers may believe lockdowns are stifling demand for its SCENESSE product.
• FlexiGroup Limited (ASX: FXL) has entered the top ten with 7.7% of its shares held short. Although the company’s buy now pay later offering is performing well, there are concerns over the rest of the business.
• Corporate Travel Management Ltd (ASX: CTD) has short interest of 7.2%, which is down week on week. Short sellers appear to be closing positions amid a strong rebound in the travel company’s shares.
• Bank of Queensland Limited (ASX: BOQ) has seen its short interest fall to 7.1%. This regional bank has come under significant pressure this year after delivering a soft half year result and warning that trading conditions were expected to remain tough.

More reading

• ASX 200 plunges 3.1%, Afterpay suffers
• Insiders have been buying Fortescue and this ASX share
• Is the Galaxy Resources share price a buy?
• Quarterly rebalance: Coles and Fortescue added to ASX 20, Zip joins the ASX 200
• How to build a recession-beating ASX share portfolio

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended FlexiGroup Limited and InvoCare 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 These are the 10 most shorted ASX shares appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) fell by 3.06% on Friday, bringing many share prices down with it. During the week there was a cavalcade of bad news. From the start of an official recession after a 7% fall in GDP for the June quarter, to fears of a global slowdown, through to China banning all barley imports from Australia. The last of the major negative economic domestic news was a fall of 0.4% in Core Logic’s home value index.

In the buy now, pay later (BNPL) sector, Paypal Holdings Inc (NASDAQ: PYPL) announced it would be entering the market with an existing global platform. Consequently, companies like Sezzle Inc (ASX: SZL), Zip Co Ltd (ASZ: Z1P) and even the market leader, Afterpay Ltd (ASX: APT), saw their share prices fall by greater than 5%. In addition, the expectation of harder times ahead saw the Commonwealth Bank of Australia (ASX: CBA) share price fall by 2.13%, while the other big 4 banks saw falls of over 3%.

Nevertheless, there were definitely bright spots in the market. In my view, the positive performance of these companies serves to highlight investor sentiment, and where there is the possibility of share price growth over the next 6 – 18 months. 

Business credit

Three of the share prices I saw rise on Friday were related to personal and business credit. For example, CML Group Ltd (ASX: CGR) saw its share price go against the tide and rise by 1.37%. CML offers financing services for small businesses secured by assets other than real estate. It also has an online platform called Earlypay to increase customer loyalty and smooth the credit process. I have been watching this company for a while now and I think it is likely to perform well in the current market. 

CML Group is selling at a price-to-earnings (P/E) ratio of 22.29 and has a trailing 12 month dividend yield of 4.73%.

Consumer Credit

The Moneyme Ltd (ASX: MME) share price rose by 2.56% Friday. This company is an online loan provider. In FY20 it was able to increase origination by 52.8% and its gross loan book by 52.7%.  It has BNPL style services in real estate renting and sales, as well as a short-term, interest-free virtual credit card. However, the neo-lender is a very innovative and versatile company. Its principal business line is personal loans for up to 5 years. Well beyond that of the BNPL sector.

Moneyme is selling at a P/E of 190, which is very high. Clearly the market expects a lot from this company and I think they may be right. 

Money3 Corporation Limited (ASX: MNY) is another consumer lender primarily targeting the car loans sector, but also long-term personal loans. Recently, the Money3 share price rose after the company reported an increase in revenue of 35.3% and a 16.4% growth in its loan book. The company has been able to expand significantly in the near prime sector. Near prime is a sector for those with a problematic credit history. Consequently, they are able to charge higher margins. 

If even half of the forecasts are correct, we are headed for a pretty rough ride over the next 1 – 2 years. Therefore, companies like this will probably see higher revenues. Money3 is selling at a P/E ratio of 17.29 and has a trailing 12 month dividend yield of 3.86%.

Foolish takeaway

To me, the trends reflected last week signify that investors are repositioning their portfolios for a change in the economy. As such, acting sooner rather than later could be wise. Once shares like these take off, then some potential share price gains could be curtailed. I like all three of these companies, with CML Group being my stand out option. 

More reading

• More radical action from RBA likely after Victoria’s extends harsh lockdown
• ASX 200 Weekly Wrap: Friday crash pulls ASX back below 6,000 points
• Where to invest $500 into ASX shares right now
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to sell next week

Daryl Mather owns shares of Sezzle Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PayPal Holdings and 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.

The post Share price opportunities to buy this week appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) capped off one of its worst weeks in 3 months last week, dropping a substantial 2.4% over the week. It was a fairly ordinary week on the ASX 200 until Friday. From Monday to Thursday, the ASX 200 was up for the week (around 0.6%) and things seemed to be fairly ordinary. No major news, no significant market-moving events. But then Friday came and brought mayhem with it. Friday started with the ASX 200 plunging by 2.4% half an hour after market open. By 2pm, the index had fallen by another 0.8% and Friday ended up wiping 3.06% from the value of the ASX 200.

It was the ASX 200 blue chips that led these losses. The ASX’s biggest share, CSL Limited (ASX: CSL), was down 4.09% on Friday, whilst the major ASX banks and Telstra Corporation Ltd (ASX: TLS) were all down more than 2%. Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) were both down by 3.39% and 3.94% respectively. BHP Group Ltd (ASX: BHP) was down 3.78% and Wesfarmers Ltd (ASX: WES) by 3.73%.

ASX tech shares, whilst not as important to the ASX 200 Index, were nonetheless the worst hit shares. Afterpay Ltd (ASX: APT) shares were down 6.7% and WiseTech Global Ltd (ASX: WTC) down 7.1% on Friday. Appen Ltd (ASX: APX), Xero Limited (ASX: XRO) and Altium Limited (ASX: ALU) were all down by more than 5%.

US markets bring ASX 200 carnage

The catalyst for these moves? Well, it didn’t appear to have anything to do with the Australian economy or the Australian commercial landscape. Rather, it followed an extremely heavy night of selling over in the United States markets on Thursday night (our time), which logically reduces the value of almost every company on the ASX (I hope you’re sensing the sarcasm here!). In all seriousness, the US markets have been on a tear in recent weeks, with big tech companies like Apple Inc (NASDAQ: AAPL) and Tesla Inc (NASDAQ: TSLA) in particular going bananas after recent stock splits.

Thursday night saw a dramatic correction of this run-up.

The tech-heavy Nasdaq Composite index dropped by 5% on Thursday night, with the broader S&P 500 Index dropping by 3.5%. It was the worst day for the Nasdaq since March. US tech shares took the brunt of these falls, with Apple down by 8% and Tesla by 9%. Other tech names like Amazon.com Inc (NASDAQ: AMZN) and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) weren’t spared either, dropping by 4.6% and 5.1% respectively.

There’s little doubt that US tech shares’ valuations had been becoming stretched in recent months in my view, so there was always going to be a pullback at some point. This week has delivered it and the spillover has hit the ASX in dramatic fashion.

How did the markets end the week?

As we’ve discussed, it was a dramatic week on the ASX 200. The index started out the week at 6,073.8 points and finished up on Friday at 5,925.5 points for a week-on-week loss of 2.44%. Monday started out strong with a 2.2% rise for ASX 200 shares. Tuesday then brought a 1.8% slump, which was promptly reversed on Wednesday with a 1.8% gain (despite official confirmation of Australia’s first recession in 3 decades). Then Thursday brought a small 0.8% gain before Friday saw the week’s gain destroyed with the 3.06% plunge.

Meanwhile, the All Ordinaries Index (ASX: XAO) also had a nasty week, starting out on Monday at 6,262.5 points and finishing up on Friday at 6,108.8 points for a week-on-week loss of 2.5%.

Which ASX 200 shares were the biggest winners and losers?

Now let’s turn to the Foolish gossip pages with last week’s winners and losers. As always, we’ll start with the losers:

Worst ASX 200 losers	% loss for the week
IOOF Holdings Limited (ASX: IFL)	(22.5%)
Afterpay Ltd (ASX: APT)	(11.9%)
Platinum Asset Management Ltd (ASX: PTM)	(10.1%)
Medibank Private Ltd (ASX: MPL)	(9.6%)

The week’s recipient of the ASX 200 wooden spoon goes to wealth manager IOOF. Investors couldn’t wait to get out of this company’s shares after the completion of a mammoth $1.04 billion capital raising. IOOF intends to use this money to purchase wealth business MLC from National Australia Bank Ltd. (ASX: NAB). Clearly investors aren’t too hot on the whole idea.

Next up we have Afterpay, a rare appearance for the buy now, pay later (BNPL) pioneer in the losers column. As one of the ASX’s highest flying tech shares in 2020 so far, Afterpay was particularly vulnerable to the tech sell-off the ASX saw on Friday. The 6.7% fall on Friday was enough to pull Afterpay shares down nearly 12% last week. An announcement from US payments giant PayPal Holdings Inc. (NASDAQ: PYPL) that the company intends to rollout a BNPL product of its own didn’t help either.

Platinum was a victim of the sell-off on Friday with no major news coming out of the asset manager, whilst Medibank also had a tough week, made tougher by the company going ex-dividend on Wednesday.

Now the losers are out of the way, let’s take a look at last week’s winners:

Best ASX 200 gainers	% gain for the week
SkyCity Entertainment Group Limited  (ASX: SKC)	11.7%
Lendlease Group (ASX: LLC)	9.1%
AMP Limited (ASX: AMP)	8.5%
Costa Group Holdings Ltd (ASX: CGC)	8.5%

Taking out top spot on the ASX 200 last week was casino operator SkyCity. Investors were excited by this company’s late-out-the-gate earnings report that the company released on Thursday, in which SkyCity said it expects to return to profit growth in FY2021.

Next up we have property tycoon Lendlease. Investors were evidently impressed by a ‘strategy update’ that the company released last week. Despite this bump in share price, Lendlease shares remain nearly 32% below where they started the year.

Investors also reacted positively to AMP’s plans to potentially break up and sell the pieces of the iconic business, seeing some potential value for shareholders in the process.

Finally, we have agricultural company Costa. Costa shares have been in investors’ sights for the last week after the company posted a positive earnings update the previous week.

What does this week look like for the ASX 200?

Last week’s late market moves probably took most of us by surprise , and in my opinion, all eyes will be turning to the US markets this week for some directional guidance for the ASX 200. The US markets are closed on Monday (US time) for their Labour Day weekend, so we will have to wait until Tuesday night (our time) to get a gauge on how the Americans are feeling. 

I would anticipate some more volatility on the ASX if the US markets plunge again, but equally, I wouldn’t be surprised to see the ASX 200 rally if US investors shake off the wobbles that last week saw when trading resumes.

So to prepare yourself for this week and whatever it may bring, here is a look at how the major ASX 200 blue chip shares are shaping up:

More reading

• Where to invest $500 into ASX shares right now
• 5 things to watch on the ASX 200 on Monday
• Why I would buy these quality ASX shares for a retirement portfolio
• Forget Westpac’s term deposits and buy these ASX dividend shares
• Top brokers name 3 ASX shares to buy next week

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), National Australia Bank Limited, Newcrest Mining Limited, Telstra Limited, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Altium, Amazon, Apple, PayPal Holdings, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., WiseTech Global, and Xero and recommends the following options: short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, and long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO, Macquarie Group Limited, and Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, PayPal Holdings, and Sky City Entertainment Group 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.

The post ASX 200 Weekly Wrap: Friday crash pulls ASX back below 6,000 points appeared first on Motley Fool Australia.

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Are you planning to invest $500 into the share market in the near future?

If you are, I believe you should be looking long term with your investments. This is because at ~$10 per trade, brokerage costs will eat into your profits if you are constantly buying and selling shares.

But which shares should you buy with $500? Listed below are three quality ASX shares I think would be great options for investors:

Afterpay Ltd (ASX: APT)

I believe this buy now pay later (BNPL) provider could be a great option for a $500 investment. I believe Afterpay could be a long term market beater thanks to the growing popularity of BNPL with consumers and retailers and its global expansion plans. The latter includes plans to expand into Europe and potentially Asia in FY 2021. Combined with its long runway for growth in the $5 trillion United States market, I believe Afterpay’s earnings could grow at a rapid rate for many years to come. And if everything goes to plan, I feel Afterpay has the potential to become a giant of the payments industry.

Nearmap Ltd (ASX: NEA)

Another ASX share to consider investing $500 into is Nearmap. It is an aerial imagery technology and location data company with operations currently in the ANZ and North American markets. I believe it could also be a long term market beater. This is due to the quality of its software and its strong position in a fragmented market worth an estimated $2.9 billion per year. Another positive is that the company has the option to increase its addressable market by expanding into other countries in the future.

Pushpay Holdings Group Ltd (ASX: PPH)

A final ASX share to consider investing $500 into is Pushpay. It is a leading donor management platform provider for the faith sector. Due to the digitisation of the church and the shift to a cashless society, I believe Pushpay is well-positioned for growth over the 2020s. This certainly will be the case in FY 2021. Management recently advised that it is on course to deliver EBITDAF of between US$48 million and US$52 million this year. This will be a 91.2% to 107% increase, respectively, year on year. Looking further ahead, Pushpay is targeting a 50% share of the medium to large church market. This represents a US$1 billion revenue opportunity.

More reading

• ASX 200 Weekly Wrap: Friday crash pulls ASX back below 6,000 points
• Here’s how to make a $1 million portfolio by investing $1,000 a month
• These were the worst performing ASX 200 shares last week
• ASX All Technology Index swells with new additions
• ASX 200 plunges 3.1%, Afterpay suffers

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 Nearmap Ltd. and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Nearmap Ltd. and PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Where to invest $500 into ASX shares right now appeared first on Motley Fool Australia.

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If I had to buy one ASX share this week it would be listed investment company (LIC) Future Generation Global Investment Co Ltd (ASX: FGG).

What is a LIC?

In most ways a LIC is just like any other company. The main difference with a LIC is that instead of selling products and services, it makes investments on behalf of shareholders.

The profit generated by a LIC comes from the capital gains (both realised and unrealised) as well as the investment income it receives. The LIC can then choose to keep all of those investment profits to grow the portfolio further, or it could decide to pay out some of that profit as a dividend.

There are some very old ASX share LICs on the ASX like Australian Foundation Investment Co.Ltd. (ASX: AFI) and Argo Investments Limited (ASX: ARG). There are also newer ones such as Future Generation Global.

A quick overview of Future Generation Global Investment Co Ltd

Future Generation Global is one of the philanthropic LICs launched by Wilson Asset Management (WAM) founder Geoff Wilson. The idea behind Future Generation is to donate money to youth charities. I think it’s a great cause. Future Generation Global invests 1% of its net assets each year to youth mental health charities.

In 2020 Future Generation Global’s donation is $5.7 million. Some of the charities it supports include: Black Dog Institute, Reachout.com, Sane Australia, Kidshelpline and Butterfly.

So what ASX shares does Future Generation Global invest in? It doesn’t actually invest in Australian shares. It invests in Australian fund managers that target international shares. Those managers work for free so that Future Generation Global can make its annual donation.

Some of the fund managers that it’s invested with are: Magellan Financial Group Ltd (ASX: MFG), Cooper, Caledonia, Paradice and Munro Partners. These are some of the best fund managers in Australia.

Recent performance update

Future Generation Global releases a monthly update. The ASX share reports how its gross portfolio return compares against the MSCI AC World Index (AUD). Over July it outperformed the benchmark by 1%, over six months it outperformed by 5%, over the previous 12 months it outperformed by 4.8% and over the past three years it outperformed by 2.1% per annum with an average annual return of 13.1%.

I think this level of outperformance is attractive, particularly as it offers such a wide level of diversification.

Why I’d buy Future Generation Global Investment this week

The ASX share is invested in multiple portfolios of businesses. I really like that you get underlying exposure to many dozens of different stocks. It has been a good defensive option during COVID-19. 

I like that the Australian dollar has strengthened in recent months. That means it’s better to buy international shares such as US businesses. Right now the Australian dollar is almost at the strongest level compared to the US dollar that it has been over the past 12 months.

The Future Generation Global board recently decided to increase the full year dividend from 1.5 cents to 2 cents per share. The focus of this ASX share is capital growth, but it’s nice to see that the dividend can grow as the profit reserve gets bigger.

The value is the most important reason to consider Future Generation Global. I’m not sure what today’s pre-tax net tangible assets (NTA) per share is. But at the end of July 2020, the LIC had $1.505 of NTA per share. Compared to the pre-open Future Generation Global Investment share price of $1.29, it’s trading at an attractive 14.3% NTA discount.

Diversification, outperformance and a discount is an attractive combination in my opinion. I recently bought a parcel of shares and I’d happily do it again today.

More reading

• Here are 2 ASX shares perfect for a beginner

Motley Fool contributor Tristan Harrison owns shares of Future Generational Global Investment Company Limited. 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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Are you looking for ASX dividend shares to add to your portfolio this week? Then the ones listed below could be top options for you right now.

Here’s why I think these ASX dividend shares are currently in the buy zone for income investors:

Accent Group Ltd (ASX: AX1)

The first option for income investors to look at this week is Accent. It is a footwear-focused retailer which owns retail store brands such as HYPE DC and Platypus. Although the pandemic has hit the retail sector hard, Accent has continued its positive form thanks to the popularity of its brands, its strong market position, and growing online business.

And due to its expansion plans, strong online offering, and its focus on active/casual wear, I’m confident Accent is well positioned to grow its profits and dividends at a solid rate over the next decade. For now, I’m expecting Accent to pay a 9 cents per share fully franked dividend in FY 2021. Based on the current Accent share price, this means investors will receive a forward 5.75% dividend yield.

National Storage REIT (ASX: NSR)

Another option to consider buying is this self storage operator. I think it could be a top long term option for income investors due to its strong market position and growth through acquisition strategy. This strategy has supported solid income and distribution growth over the last few years and even during FY 2020.

National Storage posted a 9% increase in underlying earnings to $67.7 million in FY 2020. And while its earnings are expected to be flat at best in FY 2021, I’m confident its growth will resume once the crisis passes. Until then, based on the current National Storage share price, I estimate that it offers an attractive forward 4% distribution yield.

More reading

• 5 things to watch on the ASX 200 next week
• 2 high yield ASX dividend shares to buy right now
• Leading brokers name 3 ASX shares to sell today
• Buy these ASX dividend shares if the RBA cuts rates
• Is the Mirvac share price the best real estate buy right now?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent 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.

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The tech sector has been hit very hard this month following a profit-taking selloff on Wall Street’s Nasdaq index.

While this is disappointing, it has pulled down a number of high quality ASX tech shares to attractive levels.

Two ASX tech shares that I would buy are listed below. Here’s why I think investors should snap them up when the dust settles:

Appen Ltd (ASX: APX)

The Appen share price is down 26% from its 52-week high. I believe this is a buying opportunity for long-term focused investors. Appen is the leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). This essentially means that when businesses are developing AI models, they come to Appen to have its million-strong crowd-sourced team of experts prepare the data to go inside it. This is a vital part of the process, as without quality training data, a model will never reach its potential.

The good news for Appen is that demand for AI services is expected to grow strongly over the next decade as businesses and governments invest heavily in the space. I believe this bodes well for Appen and expect it to underpin strong earnings growth over the next decade. In light of this, I think now would be an opportune time to invest.

ELMO Software Ltd (ASX: ELO)

The ELMO Software share price is down a whopping 35% from its 52-week high. I think this has brought the shares of the cloud-based human resources and payroll software company to an attractive level. Especially given its strong long term growth potential and its positive performance during the pandemic. ELMO was a strong performer in FY 2020 and grew its annualised recurring revenue (ARR) by 19.7% to $55.1 million. Management expects similarly strong organic ARR growth in FY 2021 and looks likely to bolster this with acquisitions.

Looking further ahead, the company estimates that the ANZ market is currently worth $2.4 billion per year and the UK market is worth $6.8 billion. This gives ELMO and its quality software platform a long runway for growth over the next decade.

More reading

• 4 exciting small cap ASX tech shares to watch
• ASX 200 plunges 3.1%, Afterpay suffers
• Buy these beaten down ASX 200 shares after the market selloff
• 3 ASX growth shares to buy after the market selloff
• I love volatile ASX share market days like today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Elmo Software. The Motley Fool Australia owns shares of and has recommended Elmo Software. 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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On Friday the S&P/ASX 200 Index (ASX: XJO) had a day to forget and crashed notably lower. The benchmark index fell almost 3.1% to 5,925.5 points.

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

ASX 200 to drop lower gain.

It looks set to be another disappointing day of trade for the ASX 200 index. According to the latest SPI futures, the benchmark index is expected to open the day 36 points or 0.6% lower this morning. This follows a poor end to the week on Wall Street, which saw the Dow Jones fall 0.55%, the S&P 500 drop 0.8%, and the Nasdaq index tumble 1.3% lower.

Oil prices crash lower.

It could be a tough day for energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) after oil prices crashed lower on Friday night. According to Bloomberg, the WTI crude oil price fell 3.9% to US$39.77 a barrel and the Brent crude oil price dropped 3.2% to US$42.66 a barrel. Concerns over global oil demand weighed heavily on prices.

DEXUS looking at AMP fund.

The DEXUS Property Group (ASX: DXS) share price could be one to watch this morning. There are reports that the property company is looking to snare the rights to a big Australian investment fund operated by AMP Limited (ASX: AMP). The AFR understands that DEXUS is aiming to merge one of its own funds with the $4.5 billion AMP Capital Diversified Property Fund. The latter owns stakes in the Pacific Fair shopping centre, the Macquarie Centre, and the Quay Quarter.

Shares going ex-dividend.

Another group of shares will be trading ex-dividend this morning and could drop lower. Two highlights today are stock exchange operator ASX Ltd (ASX: ASX), which goes ex-dividend for its 122.5 cents per share dividend, and healthcare company Sonic Healthcare Limited (ASX: SHL) for its 51 cents per share dividend. They are joined by dairy company Bega Cheese Ltd (ASX: BGA) and financial services company IOOF Holdings Limited (ASX: IFL).

Gold price softens.

The shares of Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price softened. According to CNBC, the spot gold price fell 0.2% to US$1,934.30 an ounce on Friday night. A strong U.S. jobs report boosted the U.S. dollar and weighed on the gold price.

More reading

• 5 things to watch on the ASX 200 next week
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• ASX 200 plunges 3.1%, Afterpay suffers
• Top brokers are urging you to buy these ASX stocks in this market meltdown

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare 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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