3 ASX shares I'd buy before the election

These are 3 ASX shares I'd buy before the election.

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The election is nearly here, finally. I think there are some ASX shares that could get a boost in the coming weeks, so they could be worth buying now.

The two major parties have been in campaign mode for a long time, I'll be happy when I stop reading . I'll also be glad to stop getting Clive Palmer ads every time I watch a YouTube video.

With the election in mind, here are three ASX shares that could be boosted:

WAM Global Limited (ASX: WGB) and WAM Microcap Limited (ASX: WMI)

The listed investment company (LIC) space has been hurt pretty badly in the run-up to the election because of Labor's proposed policy to remove refunds for excess franking credits.

Some LICs like Australian Foundation Investment Co. Ltd. (ASX: AFI) generate and pass through enormous amounts of franking credits every year.

However, there are some LICs that I think are worth taking the plunge with, such as WAM Global and WAM Microcap.

Firstly, I believe that the Wilson Asset Management (WAM) team have the capability to outperform the market after fees over the long-term, particularly as markets get more volatile and the strength of the resources sector won't be repeated again over the next three years.

Second, WAM Global and WAM Microcap do not receive/generate as many franking credits compared to typical ASX-focused LICs because global shares don't pay full franked dividends and smaller ASX businesses tend to pay little (if any) dividends. Franking credits are not as important as normal capital growth with these two LICs.

Third, pollsters believe that Labor (and the Greens) will not have enough strength in the Senate to pass through changes to the franking credit system.

Finally, the discounts that WAM Global and WAM Microcap are trading at are attractive enough (around a 10% discount to NTA, WAM Microcap's might be a little less) that they are worth owning even without franking credit refunds.

Bellamy's Australia Ltd (ASX: BAL)

Some believe that China is playing difficult with some Australian businesses to punish Australia's tougher stance on Huawei and a few other Chinese-related issues.

Labor may be a little more receptive to working with the Chinese and therefore the chance of Bellamy's SAMR registration going through could be higher. If Bellamy's is successful then I cannot see its share price languishing under $10 for long.

Foolish takeaway

I think the discount to NTA for the diversified portfolios of WAM Microcap and WAM Global are too good to ignore. If I were given $2,000 to invest today I would happily invest in both of them.

Motley Fool contributor Tristan Harrison owns shares of WAM MICRO FPO and WAMGLOBAL FPO. The Motley Fool Australia has recommended Bellamy's Australia. 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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