The ASX 200 (ASX: XJO) share market has had a very volatile start to the year. The situation that’s occurring in Ukraine is horrific.
What are investors meant to do about these types of events?
Stay calm
It’s terrible what the people of Ukraine are going through and probably feeling right now. Their way of living has been turned upside down. Some people may not be able to see their family again. I’m not sure there’s a silver lining to what’s going on, but I hope the people there can find safety.
The 200 share market (and global share markets) have been unsurprisingly volatile in response to what’s happening.
It adds to the declines we’ve already seen this year from investor concerns about the rapid inflation and the potential strength of interest rate hikes needed to bring inflation under control.
But, I think it’s important to stay calm in regards to our ASX share portfolios. The ASX share market has been through many wars like Iraq, Afghanistan, Vietnam and so on. Any companies that have been around since 1938, such as BHP Group Ltd (ASX: BHP) and Australian Foundation Investment Co. Ltd. (ASX: AFI), have lived through World War 2. In-fact, BHP has lived through both world wars.
I’m not saying world war three is about to start! I am saying that if we think long-term with our investing, which hopefully has always been the case, most ASX shares’ operations will be largely unaffected directly by what’s going on and therefore there shouldn’t be a need to sell any shares because of the situation in Eastern Europe.
But, I acknowledge it’s possible the current oil price increase could affect the inflation situation.
Scan the ASX (200) share market
It might seem silly to say, but the ASX 200 share market doesn’t plunge 3% one day for no reason. There is normally a significant event happening, such as the GFC or a global pandemic.
Looking at these huge falls historically, the ASX share market eventually recovers. Sometimes it’s a quick recovery, sometimes it takes years. There’s also a recovery story for each individual ASX share from crashes. If we had a time machine, the GFC and COVID crash would be two of the most compelling times to buy ASX (200) shares.
If it’s possible for investors to separate the horribleness of the invasion, and what’s going on in the ASX share market, many businesses are now much lower than they were last week or at the start of the year.
There are plenty of ASX growth share that are at 52-week lows, or close to it, that I would be very willing to invest in such as Temple & Webster Group Ltd (ASX: TPW), Adore Beauty Group Ltd (ASX: ABY), Brickworks Limited (ASX: BKW), Xero Limited (ASX: XRO), Volpara Health Technologies Ltd (ASX: VHT) and Australian Ethical Investment Limited (ASX: AEF).
There may be a bit of an ASX 200 share market rally today, but I will be looking to see if there is anything I want to invest in.
