The S&P/ASX 200 (INDEXASX: XJO) is having an awful day, to say the least. The ASX 200 index is currently down 6.2% to 5,830 points. The massive gains that we saw in ASX shares last year are now all but gone.
Although this is a tough time to have a lot of capital in the markets, market drops like these always have a silver lining – the ability to buy your favourite ASX companies on the cheap!
So here's how I would spend $5,000 on ASX 200 shares today.
Woolworths Group Ltd (ASX: WOW)
Woolies shares haven't been immune to the broader market sell-off and are now trading under $38 a share after making a new all-time high of $43.96 just 3 weeks ago. However, I don't think Woolworths faces too many long-term issues from the outbreak of the coronavirus – exemplified by the run on essential items like toilet paper we have seen over the past week or so. It might even book a sales record this quarter!
Thus, Woolworths might be a great ASX 200 company to check out today.
Westpac Banking Corp (ASX: WBC)
Westpac is far from a safe bet in today's market. Ultra-low interest rates are an issue for this bank – as are the continuing compensation payments resulting from the 2018 Royal Commission. But today, Westpac shares are trading under $20, which was almost unthinkable 3 weeks ago. That puts Westpac's starting dividend yield at 8.71% today (or 12.44% grossed-up).
Whilst you may have (justifiable) reservations about Westpac, Westpac shares are priced so low that I think a speculative buy today could prove a compelling value play.
Beach Energy Ltd (ASX: BPT)
Beach is an oil company and has been absolutely smashed today, falling by over 21% at the time of writing at $1.29 a share. Oil prices collapsed overnight due to overproduction concerns and have prompted shares of oil producers like Beach to follow suit. But oil prices won't stay low forever and because of this I think Beach is another company well worth a look in today's market.
Foolish takeaway
Investing in time like these can be emotionally draining and downright frightening. It's hard to deploy money into the markets when you can see big losses on paper within your own portfolio and especially if you're thinking that you'll 'wait until things get worse'. But equally, if you've saved cash to use in times like these, don't let your emotions get the better of you!
