These cuts will bring the cash rate down to the ultra low level of just 0.25%. Unfortunately, this is likely to lead to Westpac and the rest of 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:
A2 Milk Company Ltd (ASX: A2M)
This infant formula and fresh milk company has been one of the best performers on the ASX over the last five years. Its strong share price gains have been driven by explosive earnings growth thanks to the unquenchable demand for its infant formula products in China. Pleasingly, although it is generating significant revenue in China, its market share is still relatively small. I expect further strong market share gains over the next decade, driving above-average earnings growth.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
Another option for that $10,000 investment could be Domino’s. Although the pizza chain operator’s performance over the last couple of years has been a touch underwhelming, its future looks increasingly positive. Management intends to grow its global store network by 7% to 9% per annum for the next 3 to 5 years. Combined with its same store sales growth target of 3% to 6% per annum over the same period, I expect this to lead to strong profit growth.
Pushpay Holdings Group Ltd (ASX: PPH)
A final option to consider for that $10,000 investment could be Pushpay. It is a fast-growing donor management platform provider. Its platform makes donating a seamless experience for both the giver and the receiver. Pushpay’s platform has been well-received by churches in the United States, leading to strong market share gains over the last few years. This has allowed Pushpay to deliver impressive sales growth over the period. And thanks to the recent US$87.5 million acquisition of church management system provider Church Community Builder, I believe its strong form can continue for a long time to come.
These 3 stocks could be the next big movers in 2020
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
*Returns as of 6/8/2020
James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited and PUSHPAY FPO NZX. 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.
- 3 small cap ASX shares to put on your watchlist right now – September 28, 2020 3:00pm
- Why Corp Travel Management (ASX:CTD) and Starpharma (ASX:SPL) shares are in trading halts – September 28, 2020 2:06pm
- Piedmont Lithium (ASX:PLL) share price rockets 83% higher on Tesla deal – September 28, 2020 1:35pm