Given the low interest rate environment we are living in and the likelihood that little will change for the next couple of years, I think it is worth thinking about putting your money to work in the share market rather than leaving it to gather dust in a savings account.
Especially after the market selloff in the last quarter of 2018 has left a large number of shares trading at very attractive levels.
If I had $25,000 in a savings account, I would consider investing these funds into these three shares:
Appen Ltd (ASX: APX)
My favourite tech share to buy right now is Appen. It is part of the WAAAX group of shares that caught the eye in 2018 after generating stellar returns for their respective shareholders. I’m optimistic that there will be more of the same for Appen’s shares in 2019 thanks to its exposure to the quick-growing machine learning and artificial intelligence markets. With these market growing at an incredible pace, I expect demand for its human annotated dataset development services will increase strongly and lead to further profit growth.
Nanosonics Ltd (ASX: NAN)
This infection control specialist could be a good option for investors. It is the company behind the trophon EPR product, which is an automated system that delivers effective, efficient and safe high-level disinfection of ultrasound probes. It also generates meaningful revenue by supplying the proprietary disinfectant liquid used inside trophon EPR. At the end of FY 2018 the company had grown its installed base by 25% to 17,740 units thanks largely to strong demand in the United States. While this sounds like a large number, management estimates the current market opportunity to be 120,000 units, meaning it still has a significant runway for growth ahead of it.
ResMed Inc. (ASX: RMD)
Another healthcare share to consider investing that $25,000 into is ResMed. I think the sleep treatment focused medical device manufacturer is one of the highest quality companies on the Australian share market and a fantastic long term investment option. Due to the expected increase in demand for sleep treatment products and the company’s recent acquisition spree, I believe it is well-positioned to continue its strong profit growth for many years to come.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended 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.