Many experts are tipping the cash rate to be taken lower by the Reserve Bank potentially as soon as next week, so if I had $10,000 gathering only paltry interest in a bank account I would consider putting it to work in the share market.
After all, with an average return of around 9% per annum over the last three decades, the potential returns on offer are significantly greater than anything you'll find in a savings account.
With that in mind, here are three top shares that I would consider investing that $10,000 into:
Aristocrat Leisure Limited (ASX: ALL)
I think that this gaming technology company is arguably the best value growth share on the Australian share market right now. Despite posting a 34.2% lift in normalised NPATA to $729.6 million in FY 2018 and having strong long-term growth potential thanks to its fast-growing digital business, Aristocrat Leisure's shares are currently changing hands at just 20x estimated forward earnings. I suspect that a solid half year result later this month could lead to its shares rerating higher, potentially making now a good time to invest.
Coles Group Ltd (ASX: COL)
If you're interested in dividend shares then I think this supermarket giant could be a great option. I was impressed with the company's third quarter sales update earlier this week and believe it is well-placed to continue its solid form in the fourth quarter thanks to rational competition, food inflation, and recent promotions. Looking further ahead, I expect Coles' focus on automation to lead to solid profit and dividend growth over the next decade. At present I estimate that its shares provide a fully franked forward 4.6% dividend.
ResMed Inc (ASX: RMD)
I believe the shares of this sleep treatment-focused medical device company could provide above-average returns for investors over the next decade. This is due to the quality of its portfolio of cloud-connected devices which care for people with sleep apnoea, chronic obstructive pulmonary disease, and other chronic diseases. Though, it is worth noting that its third quarter results are due to be announced on Friday, so investors may want to hold back until that has been released.
