Earlier this week the Reserve Bank of Australia held the cash rate at 1.5% for yet another month.
Although the central bank did make favourable revisions to economic growth and unemployment figures, the general consensus is that rates will not be lifted for some time to come.
This could mean it is several years until rates are back to normal levels again.
With this in mind, if I had $10,000 sitting in a bank account I would consider putting it to work in the share market.
Aristocrat Leisure Limited (ASX: ALL)
I think that Aristocrat Leisure is one of the best value growth shares on the Australian share market right now. A recent note out of Goldman Sachs estimates that the gaming technology company will report earnings per share of $1.19 late this month when its FY 2018 results are released. After which, the broker has forecast earnings per share rising to $1.50 in FY 2019 and $1.73 in FY 2020. This means that its shares are changing hands at just 18x FY 2019 earnings despite its impressive long-term growth prospects.
National Storage REIT (ASX: NSR)
Investors that are interested in earning income might want to consider National Storage. At present the self-storage giant’s units offer a trailing 5.5% yield. This yield would generate income of approximately $550 from a $10,000 investment. Pleasingly, I believe its expansion plans and growing demand for its services means that it is well-positioned to grow its distribution over the coming years.
ResMed Inc. (ASX: RMD)
I think that this medical device company is one of the best buy and hold options on the Australian share market. Thanks to its exposure to the growing sleep treatment market and its investments in software-as-a-service businesses, I believe it is capable of continuing its strong growth for a number of years. ResMed recently released its first quarter results for FY 2019. This release revealed that the company posted a 12% increase in revenue to US$588.3 million and a 23% jump in net profit to US$105.7 million during the quarter.
If you have a little leftover to invest then I would suggest you take a look at these mid cap growth stars that have been tipped as potential market-beaters in 2019.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended National Storage REIT and ResMed Inc. 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.