5 ASX shares I'd buy if there is panic selling

This is where I'll be running to if there's blood in the streets.

| More on:
a group of enthusiastic people dash out of open doors as though in a hurry to purchase something. The picture features the legs of some people, faces of others and people in the background trying to get through the crowd.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

The S&P/ASX 200 Index (ASX: XJO) is now barely in the green for 2023, erasing what had been a sensational start to the year for ASX shares.

Accelerated by a barrage of concerning events within the banking industry in recent weeks, many investors are now on their toes. The collapse of Silicon Valley Bank and a takeover of Credit Suisse has called into question whether rapid rate rises are 'breaking' the system. More important is whether the fallout can be contained by the intervention of central banks around the world.

All the fear, uncertainty, and doubt are taking their toll on markets. There is a chance fear becomes the prevailing emotion if circumstances worsen, which could prompt some panic selling.

While temporarily painful, such periods of indiscriminate selling can be opportunistic for long-term shareholders.

If opportunity knocks

Two fine ASX financial shares

It appears people are shooting first and asking questions later in the financial sector, with all big four banks in the red over the past month.

If the economic situation were to deteriorate, my guess is a few ASX financial shares could be at risk of irrational selling. However, one company that I'd happily scoop up in a depressed market is Macquarie Group Ltd (ASX: MQG).

The investment bank is diversified across retail banking, asset management, commodity markets, and capital advisory. In my opinion, this makes Macquarie a much more attractive holding than the big four, as its segments smooth out the cyclicality of each individual unit.

Another ASX share I'd jump at amid any panic selling is Netwealth Group Ltd (ASX: NWL). The current valuation is hardly 'cheap', though that's my only real qualm with the company.

Considering it is taking the wealth management platform market by storm, Netwealth is an investment I would comfortably make in a falling market if the fundamentals remain unchanged.

Two quality names in health

The healthcare sector is one I particularly like due to its often defensive nature. Products and services in this industry tend to lean more toward 'needs' than 'wants' — proving resilient through all parts of the economic cycle.

Two ASX shares I'm eager to buy at lower prices are Pro Medicus Limited (ASX: PME) and Nib Holdings Limited (ASX: NHF). Both companies are intertwined with healthcare in different ways — Pro Medicus from a software angle and Nib Holdings as an insurer.

Additionally, these two businesses have a history of generating solid free cash flows. Hence, I would sleep like a baby holding these companies, even through a tumultuous period of time.

An adventurous ASX retail share

Last but not least is a retailer with an iconic and growing brand — KMD Brands Ltd (ASX: KMD).

If you're not familiar with KMD Brands, here's the long and the short of it. The company comprises outdoor clothing brand Kathmandu, surfing and sportswear retailer Rip Curl, and hiking boots brand Oboz.

Although the outdoor clothing market is highly competitive with the likes of Patagonia and The North Face, Kathmandu goes toe-to-toe with these giants locally. As demonstrated by the search volume for jackets locally, Kathmandu is a strong contender.

Source: Google Trends

The ASX retail share is now expanding to Canada and Europe, presenting an opportunity for further growth over the coming years.

Today, KMD Brands revealed it has swung back into profitability in its FY23 first-half results. An increase of 8% in sales across the United States for its Rip Curl brand is evidence of execution.

Motley Fool contributor Mitchell Lawler has positions in Kmd Brands, Macquarie Group, and Pro Medicus. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group and Pro Medicus. The Motley Fool Australia has positions in and has recommended Macquarie Group, Netwealth Group, and Pro Medicus. The Motley Fool Australia has recommended NIB Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Opinions

A trio of ASX shares analysts huddle together in an office with computer screens all around them showing share price movements
Opinions

2 of the best ASX 200 shares to buy right now

I think these stocks are excellent buys for the long-term.

Read more »

Concept image of a businessman riding a bull on an upwards arrow.
Opinions

I'm very bullish on these 2 ASX stocks

I think these are two of the best ASX investments money can buy.

Read more »

Young businesswoman sitting in kitchen and working on laptop.
Opinions

Should I buy Berkshire Hathaway or Soul Patts shares?

Both have been stand out investments over the long term.

Read more »

A photo of a young couple who are purchasing fruits and vegetables at a market shop.
Opinions

Here are 2 of the ASX's most hated shares. Which should I consider buying?

Could today's dogs be tomorrow's stars?

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Opinions

Where I'd invest $5,000 into ASX shares today

I’m excited by what these stocks can achieve.

Read more »

An analyst wearing a dark blue shirt and glasses sits at his computer with his chin resting on his hands as he looks at the CBA share price movement today
Opinions

What are Soul Patts shares worth?

This company has delivered strong gains. But what is its intrinsic value?

Read more »

Two funeral workers with a laptop surrounded by cofins.
Opinions

2 exciting ASX 300 shares on sale right now

I’m bullish about these exciting businesses.

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.
Opinions

Is it time to buy these 2 beaten-up ASX shares in 2025?

These stocks have dropped this year. Are they some of the best opportunities on the ASX?

Read more »