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Where I would invest $10,000 into ASX shares in January

James Mickleboro

According to the latest cash rate futures, the market believes there is a 56% probability of another rate cut in February.

If this proves accurate, it will drag the cash rate down to a record low of 0.5%. Unfortunately, this will put further pressure on the already ultra low interest rates that are being offered with savings accounts.

In light of this, if I had $10,000 sitting in a bank account, I would consider putting it to work in the share market.

But which shares should you buy? Here are three top shares I would invest $10,000 into:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

I think Domino’s Pizza would be a great option for a patient $10,000 investment. This is because I believe it has the potential to grow materially over the next decade thanks to its global store expansion plans. This is particularly the case in the European market where I believe it has a long runway for growth. Overall, I expect this to lead to above-average earnings growth for the foreseeable future.

ResMed Inc. (ASX: RMD)

Another top option for investors to consider buying is ResMed. It has been growing at a very strong rate thanks to increasing demand for its industry-leading sleep treatment products. For example, in FY 2019 ResMed delivered an 11% increase in full year revenue to US$2.6 billion and an 18% lift in operating profit to US$716.3 million. The good news is that I believe ResMed is well-placed to continue this positive form for some time to come thanks to the growing number of sleep apnoea sufferers globally.

Webjet Limited  (ASX: WEB)

A final option to consider for that $10,000 investment is Webjet. I believe the leading online travel agent could provide strong returns for investors over the next few years. This is because of the continued shift to online booking, its numerous popular brands, and its focus on margin expansion. Another positive is its attractive valuation of 20x estimated FY 2020 earnings. I think this is cheap given its current growth profile.

The post Where I would invest $10,000 into ASX shares in January appeared first on Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited, ResMed Inc., and Webjet Ltd. 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