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Where I would invest $10,000 in the ASX

With Australian inflation and wage growth underwhelming the market recently, it seems inevitable that the Reserve Bank of Australia will have to keep the cash rate on hold at its record low for some time to come.

In fact, the way things are going at the moment, I wouldn’t be surprised if rates stayed on hold until late into 2019.

Because of this, if I had $10,000 in a savings account I would consider putting it to work in the share market.

Here are three shares that I would consider putting that money into:

BHP Billiton Limited (ASX: BHP)

Investors looking for value and income might want to consider this mining giant’s shares. At a little over 13x estimated FY 2018 earnings and providing a trailing fully franked 4% dividend, I think BHP’s shares are a great option for investors. Especially given the positive outlook for the global economy. I expect this to lead to robust demand for commodities and support favourable prices.

Bingo Industries Ltd (ASX: BIN)

It may not be a glamorous industry, but the waste management space could be a great place to invest that $10,000 into my opinion. Thanks to population growth, its defensive qualities, the industry’s high barriers to entry, and its long-term nationwide expansion plans, I believe Bingo Industries could prove to be a quality long-tern buy and hold investment option and the best in the industry. Its shares may have risen strongly over the last 12 months, but I believe they are still great value based on its current growth profile.

Nextdc Ltd (ASX: NXT)

I think that this data centre operator would be a great option for investors due to the seismic growth of cloud computing. Overnight global behemoth Amazon smashed expectations with its strong quarterly result. One key driver of this impressive quarter was its cloud business. Amazon’s cloud business exceeded analyst estimates when it delivered a 49% increase in segment revenue to US$5.44 billion during the first quarter. This bodes well for NEXTDC, as it counts Amazon as a customer in the Australian market.

As well as those shares, I think investors should consider these top shares as well. I'm tipping these to storm higher over the next 18 months.

Top 3 ASX Blue Chips To Buy In 2018

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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%.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon. The Motley Fool Australia has recommended Amazon. 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.

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