With the cash rate tipped to remain on hold until mid-2020 by many economists, if I had $10,000 sitting in a bank account I would consider putting it to work in the share market instead of gathering just paltry interest.
Three shares that I would consider investing these funds into are listed below. Here’s why I like them:
Cochlear Limited (ASX: COH)
As people age their hearing will invariably deteriorate to the point that many will need hearing assistance products. So with populations across the globe ageing fast, I believe demand for hearing solutions products is likely to increase at a solid rate over the next decade. Given its wide distribution network and industry leading products, I believe Cochlear is well-positioned to continue growing its top and bottom lines at an above-average level for the foreseeable future. This could make it a great place to invest that $10,000.
Helloworld Travel Ltd (ASX: HLO)
Investors that are interested in mid cap shares might want to consider this integrated travel company which I believe could be a big winner from the inbound and outbound tourism boom. HelloWorld was a strong performer in FY 2018 and looks set to build on this with another solid result in FY 2019. At its annual general meeting management confirmed that it is confident that it will achieve earnings growth in the range of 16.5% and 23% in FY 2019. Another bonus with HelloWorld’s shares is that they offer an estimated fully franked forward 3.5% dividend yield.
REA Group Limited (ASX: REA)
I think that this property listings company could be a great option for that $10,000 investment as well. Although the housing market is cooling and there were concerns that the realestate.com.au operator could be negatively impacted, this has not been the case. In fact, REA Group continues to generate strong revenue and profit growth. In the first quarter of FY 2019 it posted a 17% increase in quarterly revenue to $221.9 million and a 23% lift in quarterly EBITDA to $130.9 million thanks to price changes, an improving product mix, and further depth penetration.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Helloworld Limited. The Motley Fool Australia has recommended Cochlear Ltd. and REA Group Limited. 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.