For the first time in a while, the share market is looking rather precarious. Sentiment shifts are always a bitter-sweet time – on one hand, we might get offered up some bargains on the shares we have been watching climb out of reach for the last few months. On the other hand, we must watch as the value of our portfolios takes a hit (even though it's on paper, no one enjoys it).
Still, as a long-term investor, I try to focus on the buying opportunities that a correction may present – and as the market opens this morning, I'm already seeing some opportunities
CSL Ltd (ASX: CSL)
CSL today has opened lower at $217, almost $10 per share less than what CSL closed at yesterday. CSL has been on my watchlist for a while, but as the shares have recently climbed toward the $230 level it was placed in the 'overvalued' basket for me. Today's movements have piqued my interest – CSL is the leading healthcare company on the ASX and has had a long history of market-beating returns.
Afterpay Touch Group Ltd (ASX: APT)
Afterpay shares are down a whopping 8.51% today after opening at $21.50 – a full $2 less than yesterday's closing price. It's not surprising that Afterpay is getting a belting today – growth stocks often get hit the hardest in a correction (especially the unprofitable ones).
Rio Tinto Limited (ASX: RIO)
Rio Tinto shares have now fallen over 10% in the last 10 days as the market pulls back from iron stocks with concerns that the iron ore price has peaked. Still, with the recent dividend announcement, I think that Rio shareholders have a lot to gain from holding this stock for the next few months (at least) as the company is sitting on a lot of cash. Rio shares opened this morning at $89.
Xero Ltd (ASX: XRO)
Another WAAAX growth stock, Xero has been punished this morning, opening at $59 after closing yesterday at $63.79 and has (at the time of writing) fallen 7.87%. Xero is a high-growth, non-profitable company and as such is vulnerable to a market correction. Still, with Xero's impressive subscriber growth and product stickiness, it's a stock I'm watching closely today.
Coles Group Ltd (ASX: COL)
Coles is on most income-investors' watchlist as the market keenly awaits its first dividend announcement. This stock has been bid up considerably this year – it floated last November for around $12.80 but was pushed above $14.30 earlier this month. Coles opened at $13.50 this morning after closing yesterday at $13.83.
Foolish Takeaway
Things are certainly looking interesting this morning as a lot of prices come down. Keep an eye on your favourite stocks as I expect a lot of bargain hunters will be out today.
