Unfortunately for savers it looks as though interest rates are unlikely to improve until late next year at the earliest.
Because of this, if I had $5,000 sitting in a bank account I would consider investing it in some of Australia's top shares. After all, the potential returns on offer from the share market are vastly superior to those of savings accounts or term deposits.
The three top shares listed below are the ones I would consider buying this week:
Aristocrat Leisure Limited (ASX: ALL)
While Aristocrat Leisure has a highly profitable core pokie machine business which has been performing exceptionally well this year, the main attraction to the gaming technology company for me is its growing digital business. At the last count there were a massive 8.3 million daily active users of its digital portfolio, up 493% on the prior corresponding period. Each of these users currently contributes an average of 41 U.S. cents per day, which means the segment enjoys sizeable recurring revenues which I find highly attractive. Despite its strong share price rise this year, its shares still trade at a respectable 26x estimated full-year earnings.
ResMed Inc. (ASX: RMD)
ResMed is a sleep treatment specialist which has been kicking goals again this year. In its most recent quarterly update the company revealed a 32% increase in quarterly profit to US$132.5 million. While its growth may moderate over the coming years, I still believe it is capable of above-average earnings growth thanks to its leading position in a growing sleep treatment market. This could make it a great buy and hold option in my opinion.
Xero Limited (ASX: XRO)
Another great buy and hold option could be this leading cloud-based accounting software provider. I have been very impressed with the way Xero has been growing its market share in Australia-New Zealand and the United Kingdom. But considering the quality and stickiness of the product, this doesn't come as a big surprise. Key to its long-term growth will be the U.S. market. It won't be easy and success won't come overnight, but I remain confident that Xero will succeed in that market. If this proves to be the case, it could put Xero in a position to deliver above-average growth over the next decade.
