Where I would invest $5,000 in the ASX this week

With interest rates unlikely to rise until 2019 at the earliest, I think investors ought to skip savings accounts and put their money to work in the share market.

After all, including dividends, the All Ordinaries (Index: ^AXAO) (ASX: XAO) has provided a return of approximately 9% over the last 12 months.

This is vastly superior to any returns you would have made on term deposits or savings accounts.

With that in mind, if I had $5,000 sitting in a bank account I would consider putting it into one of these three shares:

Bellamy’s Australia Ltd (ASX: BAL)

I think that Bellamy’s Australia could be a great option for investors looking to gain exposure to the infant formula boom. Although it has had its wobbles in the past, the company has moved past this and looks stronger for it. With new regulations making it harder to sell infant formula in the lucrative Chinese market, I expect Bellamy’s to grow its share of the market once its products have all necessary approvals. This strong sales growth and potential price increases could put Bellamy’s in a position to deliver above-average earnings growth for many years to come.

ResMed Inc. (CHESS) (ASX: RMD)

Last month this sleep apnoea and chronic respiratory disease treatment specialist continued its strong run and delivered yet another impressive quarterly result. For the three months ended March 31, ResMed reported a 32% increase in profit to US$132.5 million. Considering the sleep treatment market is expected to grow meaningfully over the next couple of decades, I think there will be many more quarters like this over the next few years for ResMed.

Webjet Limited (ASX: WEB)

I think investors ought to consider an investment in this leading online travel agent. Thanks to the growing popularity of its many booking platforms, Webjet has been enjoying bookings growth many times greater than the industry average. This has put the company in a position to hit its target of EBITDA of more than $80 million in FY 2018, which will be a 28% increase on the $62.5 million its achieved in FY 2017. I think this level of growth makes Webjet’s shares great value at 29x estimated forward earnings.

If you have even more money to spend then I would recommend you check out these top growth shares as well.

Top 3 ASX Blue Chips To Buy In 2018

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

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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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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. and 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.

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