The S&P/ASX 200 Index (ASX: XJO) has risen more than 50% since the dark days of the COVID-19 crash in March last year.
So it's no wonder investors are now having trouble finding stocks that are decent value for money.
To add to that dilemma, many experts are also warning retail investors to stay away from high-growth ASX shares because of rising inflation.
"I think that means taking a little bit of money off the table when it comes to big tech companies like Afterpay Ltd (ASX: APT)," Burman Invest chief investment officer Julia Lee told Switzer TV Investing.
"And instead looking at some of the cyclical companies — and looking at companies that look like value, where the market has probably punished them too far."
Lee named 2 such ASX shares that her fund is currently attracted to:
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ASX share that's 'turned a corner'
The last few years have been punishing for IOOF Holdings Limited (ASX: IFL) shareholders, as they've witnessed the horrors from the finance industry Royal Commission and the coronavirus pandemic.
In 2018, the shares were trading above $10. In the past 52 weeks, the price has been as low as $2.86.
But in the last 6 months, it has steadily recovered to climb 28.5%. And Lee expects this upward trend to continue.
"One company we find interesting at the moment, just because it looks so cheap, is IOOF. It's the only pure wealth manager on the market," she said.
"And if you have a look at the other wealth platforms like Netwealth Group Ltd (ASX: NWL) and Hub24 Ltd (ASX: HUB), they're up about 10% over the past month."
According to Lee, IOOF has "turned a corner" after several terrible years.
"In the last quarter, we did see investment management flows turning positive, so I think it's looking pretty interesting at these prices."
Flying will only ramp up in the next few years
Lee's fund already holds Qantas Airways Limited (ASX: QAN) shares, but remains interested in buying more.
"There's still a bit of volatility in terms of that travel space," she said.
"We're still accumulating Qantas whenever we do see weakness. Today we saw the price down around about 2%, so we took that as an opportunity to keep on topping up in little bits."
Lee is not the only expert bullish on the Flying Kangaroo.
The team at Ord Minnett earlier this month thought Qantas shares could hit $6.50 by the end of the year.
On Tuesday morning the stock was going for $5.54, implying a 17.3% upside on top of the 12.8% price rise so far this year.
"The broker also expects rational pricing from domestic carriers as borders between states reopen following the easing of COVID-related restrictions," The Motley Fool's James Mickleboro reported.
"And with Virgin Australia downsizing, its analysts expect Qantas to win market share and see opportunities for it to achieve a 70% share in the future."
