With the cash rate likely to be on hold until late 2019 or even into 2020, the paltry interest rates on savings accounts look set to be here for a long time to come.
Because of this, if I had $10,000 sitting in a bank account I would consider putting it to work in the share market.
Three shares that I would consider buying are listed below:
A2 Milk Company Ltd (ASX: A2M)
While its shares have come under pressure in recent weeks due to concerns over rising inventory levels, I still think this infant formula and dairy company could prove to be a great buy and hold investment. I believe a2 Milk can still grow its share of the Chinese infant formula market considerably over the next few years, which should underpin strong earnings growth for the foreseeable future. This is likely to be supported by its growing footprint across the world.
CSL Limited (ASX: CSL)
Last week this global biotech star released its highly anticipated full-year results and did not disappoint. CSL reported 15% growth in revenue to US$7.6 billion and 29% growth in net profit after tax to US$1.73 billion. A strong performance from its Immunoglobulins and Specialty businesses helped drive the impressive result and look set to continue doing so in FY 2019 and beyond. While its shares do look fully valued now, I believe its solid profit growth can continue and expect it to propel its shares higher over the next few years.
Macquarie Telecom Group Ltd (ASX: MAQ)
While the word telecom in its name might be off-putting for some investors, it is worth pointing out that Macquarie Telecom is nothing like Telstra Corporation Ltd (ASX: TLS) and its peers. Macquarie Telecom is a data centre, cloud, cyber security, and telecom company which has been growing at an impressively strong rate of late. Earlier this month management advised that EBITDA is expected to be in the range of $47 million to $48 million in FY 2018. This represents annual growth of approximately 19% at the high end of its guidance range. I expect the company to continue growing profits at an above-average rate in the future thanks to its exposure to the cloud computing boom and recently announced plans to more than triple its data centre capacity over the coming years.
