With interest rates at record lows and likely to go even lower in the coming months, if I had $20,000 sitting in a savings account I would consider putting it to work in the share market.
After all, the potential returns on offer are vastly superior to anything you'll find with bank accounts or term deposits.
With that in mind, here are three shares that I would buy with this money:
Domino's Pizza Enterprises Ltd (ASX: DMP)
Domino's Pizza's performance over the last couple of years has been extremely disappointing and I've lost count how many times it has fallen short of its guidance. For this reason I can understand why some investors are not keen on it. However, I think it is worth looking beyond this and focusing on its long-term growth opportunity thanks to its bold expansion plans. If the company executes on its plan to almost double the size of its store network over the next seven years, then it should drive strong earnings growth over the next decade.
ResMed Inc. (ASX: RMD)
In FY 2019 this sleep treatment-focused medical device company was on form again and delivered an 11% increase in full year revenue to US$2.6 billion and an 18% lift in operating profit to US$716.3 million. The good news is that I believe ResMed is well-placed to continue this positive form for some time to come thanks to the growing demand for its industry-leading products in the fast-growing sleep treatment market. Another positive is that a large majority of sleep apnoea sufferers are yet to be diagnosed, which means there still appears to be a significant runway for growth.
Xero Limited (ASX: XRO)
Xero is a leading business and accounting software provider which I think would be a great option for that $20,000. I believe it is well-positioned for strong long term growth given the quality of its product, its international expansion, and sizeable global market opportunity. Furthermore, according to a recent study, over the next five years the Cloud Accounting Software market is predicted to grow at an 8.6% CAGR. I believe this bodes well for Xero's growth prospects.
