Don't waste this market selloff: Why now could be the time to buy ASX shares

The market is being sold off again but every cloud has a silver lining.

| More on:
A group of people in suits watch as a man puts his hand up to take the opportunity.

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

It certainly has been a rough ride for ASX shares in recent weeks.

From global tech weakness to renewed trade tensions and ongoing macro uncertainty, investors have had no shortage of reasons to stay on the sidelines.

But for long-term thinkers, this kind of market backdrop isn't a reason to panic — it is a reason to prepare.

Because if history has taught us anything, it is that periods of market fear often create the best opportunities for future gains from ASX shares.

So, with the ASX 200 index opening the week deep in the red with another market selloff, is now the time to take action?

Volatility brings opportunity with ASX shares

The recent market selloff has knocked down a wide range of ASX shares — some for good reason, many without much justification. When entire sectors drop in unison, it is usually a sign that investors are trading on headlines rather than fundamentals.

This is where the opportunity lies. Quality companies don't become less valuable overnight just because the market has a nervous twitch. They are still the same quality businesses, just trading at a fraction of the price that investors were willing to pay a matter of a few weeks ago.

Great companies, lower prices

Take tech and growth stocks, for example. Names like WiseTech Global Ltd (ASX: WTC), NextDC Ltd (ASX: NXT), and Lovisa Holdings Ltd (ASX: LOV) have seen their share prices slide sharply in recent months — but these are still businesses with strong competitive positions and global expansion plans.

Even blue-chip names like Goodman Group (ASX: GMG) and ResMed Inc (ASX: RMD) are trading well below their highs despite ongoing demand tailwinds and robust balance sheets.

Rather than trying to time the exact bottom, investors should be thinking about whether the prices today reflect the future value these companies are capable of creating.

Time in the market

When share prices fall during a market selloff, it is very easy to feel like doing nothing until the dust finally settles. But the reality is that trying to perfectly time your entry rarely works. Instead, it is often those who keep adding to their portfolios during periods of uncertainty who come out ahead.

Investing now doesn't mean you'll pick the exact bottom. But if you're buying strong companies at lower prices, with a long-term horizon in mind, the odds are stacked in your favour.

Foolish takeaway

Corrections are uncomfortable — but they are also inevitable.

For smart investors, corrections are not just something to endure — they're something to use. With prices down and sentiment shaky, the next few months could be an ideal time to lean into the weakness and pick up quality ASX shares at a discount.

Motley Fool contributor James Mickleboro has positions in Goodman Group, Lovisa, Nextdc, ResMed, and WiseTech Global. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Lovisa, ResMed, and WiseTech Global. The Motley Fool Australia has positions in and has recommended ResMed and WiseTech Global. The Motley Fool Australia has recommended Goodman Group and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on How to invest

Two smiling work colleagues discuss an investment or business plan at their office.
How to invest

New to investing? Top Australian shares to buy with $500 as the ASX hits record high

You can still find quality buys in today's market.

Read more »

Business man at desk looking out window with his arms behind his head at a view of the city and stock trends overlay.
How to invest

Want diversification? I'd invest in these 2 ASX shares

I think these options are great for diversification.

Read more »

A baby reaches into the bottom drawer of a chest of drawers.
How to invest

2 ASX shares perfect for a beginner investor in 2025

I think these two shares make for a perfect first step in investing.

Read more »

ATM with Australian hundred dollar notes hanging out.
How to invest

How to turn the ASX into a passive income machine

It isn't as hard as you might think to generate big income from the share market.

Read more »

An older executive man dressed in suit trousers and a white shirt sits against a wall smiling with cash rains down over him representing dividend shares like BHP, FMG and Newcrest paying dividends in retirement
How to invest

How you can earn $10,000 a year in passive income from a $10k ASX 200 investment today!

Looking to boost your retirement with an extra $10,000 a year in passive income. Read on...

Read more »

A couple are happy sitting on their yacht.
How to invest

How soon can I become a millionaire if I invest $1,000 every month?

It might be shorter than you think.

Read more »

Couple holding a piggy bank, symbolising superannuation.
How to invest

How ASX shares can help you retire early

Here's what you need to do if you want to retire early.

Read more »

A close up picture taken from the side of a man with his head face down on his laptop computer keyboard as though he is in great despair over a mistake or error he has made or bad news he has received.
How to invest

Are you falling for any of these 6 common investment mistakes?

Biases can affect even the most savvy investors.

Read more »