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Where I’d spend $10,000 on ASX shares right now

Sebastian Bowen
Buy Shares

Given the markets had a very shaky start to the (short) week yesterday, I think it might just be a good time to deploy any extra capital you have lying around into ASX shares. After all, cash isn’t getting too much bang for its buck these days just sitting in a bank account or term deposit. Although the share market can be volatile, it offers a real chance for your money to work for you and grow and compound over time.

So saying that, here are 2 ASX shares I would consider investing in today with $10,000.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine shareholders have had a very nasty shock today. The company reported earnings that didn’t really measure up to investors expectations with a 5–10% guidance for FY20, compared to the 15–20% range it had previously flagged. Treasury Wine shares are down nearly 25% today to $12.62 at the time of writing – a 3-year low.

This is exactly the kind of move that could prove to be a lucrative buying opportunity. Yes, the company is experiencing difficulties in the US markets (which are mainly responsible for the earnings write down). But I think the long-term growth prospects for the high quality Aussie wines that Treasury sells remain intact – especially in the Chinese market. Therefore, I would strongly consider Treasury Wine as a buy today.

Telstra Corporation Ltd (ASX: TLS)

Perhaps a more conservative choice, I think Telstra is also a good share to spend $10,000 on today. The Telstra share price has had a pretty good year so far – rising from around $3.54 on New Year’s Eve to today’s share price (at the time of writing) of $3.86 (a 9% swing).

Still, I think there might be plenty of petrol left in the Telstra tank. The company is investing heavily in rolling out its new ultra-fast 5G network, which I think will eventually result in Telstra being the market leader. In the meantime, there’s always Telstra’s hefty dividend to keep you company, which on current prices offers a yield of 4.12% (including special nbn dividends). Thus, I think Telstra shares offer both potential capital growth and dividend income for investors today, which is hardly a bad thing to have in an investment.

Foolish takeaway

If I were to spend $10,000 on ASX shares today, these 2 Aussie stalwarts would be at the top of my list. Both have robust growth plans for the future and I think their respective investors won’t be let down on today’s share prices.

The post Where I’d spend $10,000 on ASX shares right now appeared first on Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited and Treasury Wine Estates Limited. 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.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020