As a photographer, I don’t actually like sunrises and sunsets. I like to get things 100% and with Earth’s star this is tricky. Thus, I did not take the shot above! I did however photo-shop the Phoenix logo to the base of the image.
As a UK equity income investor, the Phoenix Group PLC is a significant asset in my stock portfolio.
Unlike Simon Watkins (https://uk.finance.yahoo.com/news/time-buy-more-10-yielding-060936392.html), I will not be buying any more Phoenix shares; but not due to any lack of enthusiasm for the stock – merely caution as I am overweight in the position.
Income investors judge a stock on it’s essential financial metrics (Can it afford to pay the dividend it’s paying over time and varying market conditions going forward?). Capital gain (https://www.fool.co.uk/2024/03/27/just-how-high-can-the-phoenix-share-price-go-now/) is less of a concern. Capital loss is a factor and generally addressed (mitigating the risk) by buying in a market trough and taking advantage of well priced rights issues.
IF I was giving investment advice (which this is NOT) I’d suggest that Phoenix is a good share to buy if you are looking for an income to add to your income in retirement. At these prices it is a good buy. However, Phoenix is a stock that can be greatly affected by market sentiment and market sentiment reacts to events on the world stage.
Equity investors need to be aware of and take into consideration events and possible events to come. One event which is definitely going to happen is going to occur on Tuesday 5th November 2024 – and no, I am not writing about Bonfire/Guy Fawkes Night! I’m writing about the US Presidential election that is going to take place on the same day.
Fireworks – of the metaphorical kind – will be aplenty on the other side of the pond!
Such is the division that analysts are becoming increasingly concerned about the situation.
IF Trump looses narrowly – especially if he gains a majority of the popular vote but is thwarted in the Electoral College due to votes cast for minor candidates, there could be difficulties. These difficulties could be exacerbated with Mr Trump being sent to prison. Were Mr Trump in prison before November and he were to loose, naturally he would not be in a position to grant himself a pardon!
Were the political situation in the USA to become unstable this would effect the US Stock Market and the US $. This would inevitably impact the UK stock market and Sterling – badly.
The situation would only worsen were (assuming a Biden/Harris Democratic ticket) a re-elected President Biden to resign the presidency shortly after his inauguration (due to his cognitive decline) and hand over to Ms Harris.
You will note Dear Reader that I have not commented about there been a Conservative or Labour government after the UK’s General Election. This because whichever party forms the next government it will make very little difference!