This cut is expected to come by March of 2020, bringing the cash rate down to 0.5%.
If this does happen, it is likely to lead to Westpac and the big four banks cutting the interest rates on savings accounts further.
In light of this, if you have $10,000 sitting in a savings account, I would suggest you consider putting it to work in the share market. Here are three top shares which I would invest the funds into:
Altium Limited (ASX: ALU)
Altium is a printed circuit board (PCB) design software company. In FY 2019 it was on form again and reported a 22.6% increase in full year revenue to US$171.8 million and an impressive 41.1% increase in net profit after tax to US$52.9 million. Pleasingly, Altium appears well-placed to continue its growth for a number of years thanks to strong demand for its industry-leading software and increasingly supportive tailwinds. In fact, management is aiming to grow its revenue to US$500 million by FY 2025.
Cochlear Limited (ASX: COH)
Cochlear is a hearing solutions company that I think could be a great option for that $10,000 investment. This is due largely to the ageing populations tailwind. As people age, their hearing often fades and will require some form of assistance. Due to the quality of Cochlear’s products and its wide distribution network, I expect it to benefit greatly from this increasing demand. Another positive is the industry’s high barriers to entry, which I expect to limit competition.
Webjet Limited (ASX: WEB)
Another option for investors to consider is Webjet. It is an online travel booking company which has come under pressure this year due to the collapse of its UK partner Thomas Cook. Whilst the demise of the UK-based travel company was disappointing and has had a negative impact on Webjet’s profits, I’m confident it will still deliver strong profit growth in FY 2020 and for many years to come. This could make it worthwhile buying shares whilst they are trading at such attractive levels.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Cochlear Ltd. and Webjet Ltd. 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.