The prospect of a Donald Trump victory at next week's U.S. election has weighed heavily on international markets this week. So much so the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) plunged as much as 1.5% at one point on Wednesday.
Following the shock Brexit vote, it would appear as though investors are not taking any chances this time and have been preparing for a surprise Trump win.
Some investors have been going to the safe haven of gold, much to the delight of shareholders of gold miners such as Resolute Mining Limited (ASX: RSG). Others have been exiting positions in high-quality companies, driving their share prices lower.
Whilst this is not at all great to see, it has potentially thrown up a few bargains for investors to jump on in my opinion. When the dust settles I believe these three shares would be great investments:
Appen Ltd (ASX: APX)
The shares of this leading language services and technology company have fallen over 15% in the last 30 days. A good portion of this came on Wednesday when its shares fell almost 7% to $2.79. I believe when markets find their feet again, Appen would be a great long-term investment. Especially now its shares are changing hands at just 20x estimated FY 2017's earnings.
Retail Food Group Limited (ASX: RFG)
The master franchisor of popular brands such as Gloria Jean's, Donut King, and Michel's Patisserie saw its share price fall almost 6% on Wednesday. This could make Retail Food Group a bargain buy now in my opinion. Not only are its shares changing hands at a reasonable 15x full year earnings, but it is expected to provide a fully franked 4.7% dividend in FY 2017. That's great value when you consider it grew net profit by 20% to $66.4 million this year and is expecting similar growth in FY 2017.
Webjet Limited (ASX: WEB)
Webjet's shares fell an incredible 11.5% on Wednesday despite there being no news out of the online travel agency. Although Qantas Airways Limited (ASX: QAN) reported a weak first quarter on Monday, it was in-line with previous guidance. So I don't believe the sell-off is related to any concerns over weaker demand in the industry. In my opinion it is likely to be a spot of profit taking. After all, its shares had almost doubled in value (in around one year) up until this week.
