With the Reserve Bank of Australia tipped to take rates lower and lower in the coming 12 months, if I had $5,000 sitting in a Commonwealth Bank of Australia (ASX: CBA) savings account gaining only paltry interest, I would consider putting it to work in the share market instead.
Two shares that I would invest these funds into are listed below. Here's why I like them:
Appen Ltd (ASX: APX)
The Appen share price has come under pressure today and dropped over 6% following the release of its guidance for FY 2019. According to the release, the company expects full year underlying EBITDA to be in the range of $85 million to $90 million including the newly acquired Figure Eight business. This represents an increase of 19.2% and 26.2% compared to the $71.3 million achieved in FY 2018.
I suspect the market had been pricing in a guidance upgrade and have hit the sell button when one didn't come. However, I think this share price weakness is a buying opportunity for investors and continue to believe Appen is well-placed to grow at a strong rate over the next decade thanks to its exposure to the fast-growing machine learning and artificial intelligence markets.
CSL Limited (ASX: CSL)
Another quality investment option for that $5,000 could be this biotherapeutics giant. CSL is made up of two businesses – CSL Behring and Seqirus. The company's CSL Behring business is the global leader in plasma therapies and its Seqirus business is the second biggest in the influenza vaccines industry.
Both businesses are exceptionally well run and have strong growth potential thanks to their leading products and deep research and development pipelines which are expected to fuel strong future growth. It is for these reasons that I think CSL is arguably the best buy and hold investment option on the Australian share market today.
