With interest rates at record lows and likely to go even lower in 2020, I think the share market remains the best place to put your money.
With that in mind, here's where I would invest $5,000 for strong returns in 2020:
Appen Ltd (ASX: APX)
I think Appen would be a great option for that $5,000 investment. Over the last few years Appen has cemented its position as the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). It has expertise in more than 180 languages, a global crowd of more than 1 million skilled contractors, and the industry's most advanced AI-assisted data annotation platform.
This allows the company to provide solutions to the leaders in technology, automotive, financial services, retail, manufacturing, and governments worldwide. Pleasingly, with spending on machine learning and AI expected to explode over the next decade, I believe Appen is perfectly positioned to continue growing its bottom line at a strong rate for many years to come.
Nanosonics Ltd (ASX: NAN)
Nanosonics is an infection control specialist which I think has very strong long-term growth potential. It has been growing at a rapid rate over the last few years thanks to the increasing popularity of its trophon EPR product. This product provides healthcare organisations with a safe, versatile, and simple way to prevent ultrasound probe cross-infection. Strong demand led to its installed base growing 18% in FY 2019 to 20,930 units.
This installed base growth supported a big jump in revenue due to a combination of unit sales and the recurring revenues from the consumables the product requires. And whilst 20,930 units sounds like a very large number, it represents approximately one-sixth of the overall market. Due to the quality of the product, I expect further market share gains in the coming years. Combined with the release of new products targeting unmet needs, I expect this to lead to strong sales and earnings growth over the next decade.
