ASX shares have been smashed in 2020. Some sectors, like travel and retail, have seen companies shed billions in value amid the COVID-19 shutdown. But it's not all doom and gloom on the markets right now.
There are definitely buying opportunities for savvy investors at the moment. There has been a lot of panic selling while many growth and value shares have outperformed the S&P/ASX 200 Index (ASX: XJO) over the last 6 weeks or so.
Here are a couple of the smartest ASX shares to buy if you have $2,000 to spare right now.
What are the smartest ASX shares to buy?
If you're more of a passive investor, the Vanguard Australian Shares Index ETF (ASX: VAS) may be one to buy. Sure, this means you're not going to realise the upside of a growth share like NextDC Ltd (ASX: NXT). But it does mean your risk is diversified and you're investing in a broad basket of high-quality ASX shares for the long-term.
In fact, the laziest investors can sometimes do the best. According to an article in the Australian Financial Review (AFR), many investors were buying and selling in March and April. However, those who bought and held a broad market index like Vanguard Australian Shares Index ETF rode the ASX down and then back up again.
Having said that, I think those Fools looking specifically for undervalued shares could look elsewhere. Individual stock picking is more speculative than buying ETFs but there's no doubt it can pay off. That's especially the case in uncertain times like we're experiencing right now.
As such, ASX shares like CSL Limited (ASX: CSL) and Webjet Limited (ASX: WEB) could be in the buy zone.
CSL has been a solid growth and dividend share for a number of years. In fact, the CSL share price is up more than 40,000% since its IPO in 1994. Furthermore, I think there's a solid outlook for the biotech giant this year. CSL's non-cyclical earnings and strong research and development (R&D) pipeline could pay dividends (literally) in 2020 while its ASX 200 peers slash theirs.
Webjet shares could be undervalued after falling 65.93% in 2020. The Aussie economy is starting to come back to life as COVID-19 restrictions are eased. This means domestic travel could soon follow, resulting in the possibility of the ASX travel share outperforming in the near future.
