MENU

Where I would invest $20,000 in the ASX this week

Although the Reserve Bank of Australia’s latest minutes revealed that the next rate change will be a move higher, there is still no indication that a hike is imminent.

Judging by inflation levels and the lack of wage growth in Australia, I suspect that rates will stay on hold well into 2019.

Which could make it well worth skipping savings accounts and putting your money to work in the share market.

If I had $20,000 sitting in a savings account I would consider investing it in these three ASX shares:

Blackmores Limited (ASX: BKL)

I think it is fair to say that Blackmores’ half-year result in February was hugely disappointing. But since then the health supplements company’s shares have sunk approximately 22% lower and to a level that I think is attractive again. This could make it an opportune time to buy its shares, especially given the strong demand for its Australian made products in the lucrative and growing Asian market.

Webjet Limited (ASX: WEB)

I think this online travel agent is one of the best options on the local share market right now. Thanks to the ongoing shift to online travel booking and a global tourism boom, I expect Webjet to continue its strong profit growth for many years to come. In February the company outperformed expectations when it delivered an impressive 45% increase in half-year net profit after tax before acquisition amortisation from continuing operations. Based on this result and its positive outlook, I think Webjet’s shares are great value at 26x estimated forward earnings.

Xero Limited (ASX: XRO)

This New Zealand-based accounting software provider is one of my favourite tech shares listed on the Australian share market. Although its shares have just reached a multi-year high this week, I don’t believe for a second that it is too late to snap them up. Thanks to the quality of its product and its growing share of key markets, I believe Xero is capable of delivering above-average sales growth for the foreseeable future.

Got another spare $20,000 to invest? Lucky you! These top shares could be well worth snapping up as well if you ask me.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.