Many in retirement are travelling comfortably, with three key factors contributing to their happiness – good physical and mental health and enough money to enjoy life.
Perhaps the assumption that markets are still anchored by predictable economic policies needs to be challenged. For the first time since the fall of the Berlin Wall, political volatility – once background noise – is potentially reshaping investment risk at a structural level.
Two beaten-down blue-chip buys
It could be a smart move to consider ASX blue chip shares during this period of intense volatility since the start of the year.
Blue chips are typically ones that have strong positions in the market and can offer more reliability in times of economic difficulties.
I’d only want to go for opportunities that are showing signs of good growth potential:
Xero Limited (ASX: XRO)
Xero could be the best blue-chip on the ASX. I think it could have the most growth potential over the long-term when looking at the A&P/ASX 20.
It has lots of great things that I look for good businesses. Xero has a very high gross profit margin, which is steadily climbing upwards. This means that every dollar of new revenue is more profitable than it was last year. The company is re-investing heavily to become a global power in the cloud accounting tech space.
I like that Xero is looking at growing in several new markets at once. South Africa, Singapore and Canada are all good countries to grow a presence in.
Over time, this ASX blue chip share may become one of the biggest businesses on the ASX thanks to its high margins and global subscriber base. Its platform is a very powerful tool for the company and subscribers.
The 36% fall of the Xero share price this year makes it a tempting proposition, in my opinion.
REA Group Limited (ASX: REA)
REA Group could be one of the very best ASX shares. It owns the high-performing realestate.com.au platform. The strength of this asset is that it has the most properties for sale, which attracts the most interested buyers. Because there are so many potential buyers, new sellers make sure they are listed with REA Group. It’s a very powerful cycle.
The ASX blue chip share is able to steadily increase prices over time, with little to no detrimental effect, showing how highly users value the service.
Over the longer-term, this platform effect could be repeated in other countries that still don’t have the same digital usage for real estate services. REA Group is invested in a number of other countries with digital platforms including the US, India and other Asian countries.
The REA Group share price has fallen by around 25% since the start of the year.
Information warning: The information in this article was published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169
