The Reserve Bank of Australia has just elected to keep rates on hold at 1.5% for yet another month.
It also warned that the pick-up in underlying inflation is taking a little longer than previously expected, which appears to almost certainly rule out a rate hike any time soon. Especially with declines in petrol prices expected to weigh on inflation.
In light of this, if I had $10,000 sitting in a bank account, I would consider putting it to work in the share market. Here's where I would invest $10,000 in February:
Australia and New Zealand Banking Group (ASX: ANZ)
Although ANZ's shares have rallied higher today following the release of the Royal Commission final report, I don't believe it is too late to buy its shares. Even after today's solid gain ANZ's shares are trading on lower than average multiples and offer a trailing fully franked 5.9% dividend. And given its exposure to a business lending market which is performing well, I think it is well placed to deliver earnings and dividend growth in FY 2019.
REA Group Limited (ASX: REA)
Due to concerns over the impact that the housing market downturn could have on its performance, the REA Group share price is down almost 19% from its all-time high. I think this could make it a great time to pick up the property listings company's shares. Especially after its first quarter update revealed that its strong growth continued despite the housing market weakness. During the three months to September 30, REA Group delivered a 17% increase in revenue and a 23% lift in EBITDA.
ResMed Inc (ASX: RMD)
I think that this sleep treatment-focused medical device company could be a great option for investors after its recent share price pull back following a softer than expected second quarter result. I believe the selloff was an overreaction and has created a buying opportunity for investors that are prepared to make a long-term investment. Not least because its leading position in a sleep treatment market has positioned it perfectly to grow earnings at a solid rate over the next decade.