The probability of the Reserve Bank cutting rates at its meeting next month currently stands at 97% according to the latest ASX 30 Day Interbank Cash Rate Futures.
While the market doesn’t always get it right, I think recent economic data means this is something that investors ought to be prepared for.
In light of this, if I had $20,000 sitting in a bank account, I would put it to work in the share market instead of having it gain only paltry interest in a bank account or with a term deposit.
Here’s where I would invest these funds:
Appen Ltd (ASX: APX)
I think this leading provider of language technology data and services would be a great place to invest $20,000. As Appen is the global leader in the development of high-quality, human-annotated datasets for an artificial intelligence market forecast to grow materially over the next decade, I believe it is perfectly positioned to continue delivering above-average earnings growth for many years to come. This could lead to its shares generating outsized returns for shareholders over the next decade.
SEEK Limited (ASX: SEK)
Another quality option for that $20,000 could be this job listings giant. Although SEEK is expected to post a small decline in earnings in FY19, this is due to the company investing heavily in its future. In light of this, I feel investors should judge its performance on its top line result, which is expected to be very strong once again. Management recently reiterated its FY19 sales growth guidance of between 16% and 20% year on year.
WiseTech Global Ltd (ASX: WTC)
A final option to consider is this logistics solutions company. I believe WiseTech Global is one of the best growth shares on the local share market thanks to its increasingly popular CargoWise One platform. CargoWise One is a single-platform software solution providing an enterprise-class management system for logistics businesses globally. Its customers include 12,000 of the world’s logistics companies across 130 countries, including 38 of the top 50 global third-party logistics providers and all 25 of the 25 largest global freight forwarders worldwide. I believe that platform is now an integral part of the global supply chain and well-placed to benefit from the ecommerce boom.
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James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of WiseTech Global. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended SEEK 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. 2019