Many investors are in two minds about buying ASX 200 shares right now. The March bear market spooked investors and there is a feeling a crash is looming once the government life support is switched off.
It's easy to fall into the trap of market timing. However, I still think there are a few good reasons to buy ASX 200 shares today.
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Everyone is waiting for a crash…
Every market commentator seems to know when the market will crash in 2021. But even a broken clock is right twice a day…
Over history, plenty of people have lost more money waiting for an ASX 200 share market crash versus those that invested and lost money in an inevitable correction.
That's because if I invest $100,000 today, and the market appreciates by 10% per annum, I would have $259,374 in 10 years time. Even if the market crashed 50% in 10 years, I would still have $129,687 in my account.
Market timing can be a dangerous game, as it's easy to just sit and watch on the sidelines. I'd rather invest in high-quality ASX 200 shares and come along for the ride.
Where else can I get a return?
While the share market may be scary, there aren't many great alternatives going around.
Interest rates are at all-time lows and potentially pushing towards zero. That means a bank account, term deposit or even many bonds won't offer much yield.
There are still some strong ASX 200 dividend shares on the market like Telstra Corporation Ltd (ASX: TLS) and Coles Group Ltd (ASX: COL). That means I don't really have many options if I don't want to partake in market timing.
Many ASX 200 shares are booming
It's true that we're seeing something of a 'two-speed' economy emerge in 2020. S&P/ASX 200 Index (ASX: XJO) has slumped 7.5% in 2020 but many ASX 200 shares are booming.
Retailers with a strong online presence like JB Hi-Fi Limited (ASX: JBH) have surged in value while tech-focused shares like Afterpay Ltd (ASX: APT) continue to climb.
Not all ASX 200 shares are created equal and its important to think long-term while investing in the short to medium-term.
