The share prices of many of the leading companies in the S&P/ASX 200 Index (ASX: XJO) have been hit hard by the coronavirus crisis over recent weeks.
It is important to keep in mind that markets factor in very quickly the impact of negative events such as this crisis we are now facing, so the bottom of the market will be reached well before the coronavirus is over.
A few sectors of our economy are experiencing tight restrictions and some are even seeing partial temporary shutdowns such as the travel, tourism, entertainment and event sectors. However, most sectors will remain fully operational.
A key advantage we have in our current era of technology advancements, driven by the internet, is that many work and essential functions can be performed remotely. Already, many businesses such as Telstra Corporation Ltd (ASX: TLS) are seeing large numbers of their staff work from home.
I believe that it is too early to say if we have reached the bottom of the cycle downturn yet. However, I do believe that the market is offering good value in a number of sectors for investors with a long-term outlook of at least three to five years, and for those whose are prepared to ride out further market bumps in the months ahead.
With that in mind, here are two of my top ASX share picks right now. Both are relatively well-positioned to absorb any negative impacts of further market volatility in the months ahead.
CSL Limited (ASX: CSL)
I believe CSL's significant market scale, with regards to both its market capitalisation as the largest company on the ASX and its geographic diversity, places the company better than most to ride out the current market challenges.
In my opinion, CSL remains well-positioned to continue to deliver strong earnings growth over the next five to ten years, driven by a strong new product development pipeline. The company has invested over US$3 billion in research and development over the last five years.
CSL also produces blood medicines and plasma products that could potentially play a vital role in helping in the coronavirus fight.
Wesfarmers Ltd (ASX: WES)
What appeals to be the most about Wesfarmers in this current crisis is its high level of diversification across a broad portfolio of assets. Wesfarmers has operations in general retail segments such as home improvement, general merchandise and office supplies, as well as industrial segments with operations in areas such as chemicals.
Combined with this, Wesfarmers has an excellent management team and a long-term track record of performing relatively well across a range of market conditions. Wesfarmers also has a strong balance sheet and deep pockets, positioning it well to ride out the current crisis.
