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        <title>Hermione Taylor &#8211; The Motley Fool UK</title>
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	<title>Hermione Taylor &#8211; The Motley Fool UK</title>
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                                <title>The Dr Martens share price: bargain basement or style over substance?</title>
                <link>https://staging.www.fool.co.uk/2021/10/20/dr-martens-bargain-basement-or-style-over-substance/</link>
                                <pubDate>Wed, 20 Oct 2021 10:51:20 +0000</pubDate>
                <dc:creator><![CDATA[Hermione Taylor]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://staging.www.fool.co.uk/?p=249168</guid>
                                    <description><![CDATA[Dr Martens footwear seems to be everywhere, but its share price has fallen 25% since its post-IPO peak. Is it a bargain for my portfolio today?]]></description>
                                                                                            <content:encoded><![CDATA[<p>Grab a hammer. Put them in the freezer. Stuff them with damp newspapers. Just some of the ways to break in your <strong>Dr Martens</strong> (<a class="tickerized-link" href="https://staging.www.fool.co.uk/tickers/lse-docs/">LSE: DOCS</a>) shoes, according to an article in <em>Metro</em> last month.</p>
<p>And Dr Martens boots seem to be everywhere &#8212; I&#8217;ve noticed articles in <em>GQ, InStyle </em>and<em> British Vogue</em> over the past month alone. So as the nights draw in and winter weather approaches, could the shoemaker be in for a bumper season and should I buy some shares?</p>
<h2>Stumbling share price</h2>
<p>Dr Martens made its stock market debut in January, at 370p per share. This was at the top end of its expected range after investor demand for the footwear firm meant that the offer was eight times oversubscribed. After reaching a high of 500p in February 2021, the Dr Martens share price juddered around the 475p mark until June, when it saw a period of slow decline. It&#8217;s now sitting back around 370p.<span class="Apple-converted-space"> </span></p>
<p>Could winter weather, Black Friday sales and Christmas shopping season give it a boost?</p>
<h2>Big strides</h2>
<p>Despite retail stores being closed for a good chunk of the year, its half-year report looked pretty strong. On a two-year basis, e-commerce <a href="https://www.londonstockexchange.com/news-article/DOCS/final-results/15021028">revenue</a> for the firm was up 155%.  There&#8217;s also encouraging potential for future growth &#8212; revenue grew 46% in China despite the disruption of the pandemic.<span class="Apple-converted-space"> </span></p>
<p>In terms of strategic priorities, Dr Martens is looking to reduce its reliance on third-party sellers and open between 20 and 25 of its own stores over the coming year. It&#8217;s also a growing player in the vegan shoe market, now offering six animal-friendly styles to customers. Using a vegan alternative upper material derived from mushrooms and a sugarcane-derived cushion are strategic priorities for the coming decade.<span class="Apple-converted-space"> </span></p>
<h2>Putting my foot in it?</h2>
<p>But there are risks. Firstly, nationwide fuel shortages mean that materials deliveries are under threat. There&#8217;s even a risk that Dr Martens might not even be able to fulfil bumper orders if they materialise this winter.</p>
<p>Secondly, materials costs could squeeze margins if leather prices increase due to growing global demand. Dr Martens could also prove vulnerable to higher costs if inflation starts to bite &#8212; prices should adjust in the longer term, but there could be a period of discomfort in the medium term.<span class="Apple-converted-space"> </span></p>
<p>And finally &#8212; fashion is fickle. The brand&#8217;s look is very much characterised by one thick soled, clumpy boot. These are hot properties in 2021 with the wider trend being all about heavy boots with chunky soles. And while Dr Martens also has timeless classic appeal (like a pair of Levi&#8217;s 501s), the company is still vulnerable to changing tastes over the coming years. There&#8217;s very little scope for diversification when a signature style is your calling card.<span class="Apple-converted-space"> </span></p>
<p>It looks as though <a href="https://staging.www.fool.co.uk/2021/02/17/dr-martens-recently-went-public-but-is-its-stock-a-buy/">post-IPO enthusiasm</a> may have worn off. With Dr Martens shares now almost back where they started in January, is it a good time for me to pick up a bargain? If the fashion press are to be believed, they could be a sensation over the winter, which could help to drive the share price back up. But I’m reluctant to put my foot in it.<span class="Apple-converted-space"> I won&#8217;t be adding this stock to my portfolio.</span></p>
<div style="background-color:#ffffff;width:100%;padding:20px 20px 20px 20px;margin:20px 0px 20px 0px;border-top:0px solid #dddddd;border-right:0px solid #dddddd;border-bottom:0px solid #dddddd;border-left:0px solid #dddddd;border-radius:0px;box-shadow:none" class="wp-block-custom-block-collection-presentational-card">
<h2 class="wp-block-heading" id="h-passive-income-stocks-our-picks">Passive income stocks: our picks</h2>



<p>Do you like the idea of dividend income?</p>



<p>The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?</p>



<p>If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…</p>



<p>Then we think you’ll want to see this report inside <em>Motley Fool Share Advisor</em> — ‘<strong>5 Essential Stocks For Passive Income Seekers</strong>’.</p>



<p>What’s more, today we’re giving away one of these stock picks, absolutely free!</p>



<div class="wp-block-custom-block-collection-cta-button"><a href="https://uk.foolpitches.com/r?e=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_c291cmNlPWl1a3NwcDc0MTAwMDAxMjQmYWRuYW1lPXVrX3NhX3Bhc3NpdmVpbmNvbWVfbm90aWNrZXIyNWVzc2VudGlhbHN0b2Nrc18yJnBsYWNlbWVudD1waXRjaCZjb252PSVjb252ZXJzaW9uaWQlJnJlZlVybD0vMjAyNS8wMy8wNS81LXVuZGVyLXRoZS1yYWRhci11ay1zaGFyZXMtdGhhdC1kZXNlcnZlLW1vcmUtYXR0ZW50aW9uLyZpbXByZXNzaW9uX2lkPWQ4Mzg4MTdiZDJjNDQxZjY4YjNmMTNmNzM1MjI2YWI5JmZsaWdodF9pZD0zMzU5OTk5ODgmYWRfaWQ9MzQ1OTE2NjY1JmNhbXBhaWduX2lkPTExNDc2ODA3MyJ9&amp;s=FTjUG1r79x9PvnGWeISpr8u0M0g" style="background-color:#5fa85d;width:fit-content;display:inline-flex;cursor:pointer;justify-content:center;align-items:center;transition:all 0.3s ease;border-width:0px;border-style:solid;border-color:#000000;border-top-left-radius:4px;border-top-right-radius:4px;border-bottom-right-radius:4px;border-bottom-left-radius:4px;--hover-background-color:#358832;--pressed-background-color:#0cbf06;padding-top:12px;padding-right:24px;padding-bottom:12px;padding-left:24px;margin-top:0px;margin-right:auto;margin-bottom:12px;margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06">
<p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">Get your free passive income stock pick</p>
</a></div>



<p class="has-text-color has-p-small-font-size" style="color:#767676">* Returns as of 2/20/25</p>



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</div><p><strong>More reading</strong></p><p><i>Hermione Taylor does not have a position in any of the shares mentioned. </i><em>The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://staging.www.fool.co.uk/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Bellway results are out &#8211; is it time to invest in the house builder?</title>
                <link>https://staging.www.fool.co.uk/2021/10/19/bellway-results-are-out-is-it-time-to-invest-in-the-house-builder/</link>
                                <pubDate>Tue, 19 Oct 2021 16:23:06 +0000</pubDate>
                <dc:creator><![CDATA[Hermione Taylor]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://staging.www.fool.co.uk/?p=249150</guid>
                                    <description><![CDATA[Bellway’s preliminary results are out today, and I’m impressed with its strategy. Can it withstand tricky times for the housing market?]]></description>
                                                                                            <content:encoded><![CDATA[<p><strong>Bellway</strong> (<a class="tickerized-link" href="https://staging.www.fool.co.uk/tickers/lse-bwy/">LSE: BWY</a>) is the UK’s fourth biggest house builder and announced its <a href="https://www.bellwayplc.co.uk/media/1810/2021-07-31-preliminary-announcement-final.pdf">preliminary results</a> today. Overall, things are looking good. Its profit margins look set to hit 20% and revenues have risen by over 40% to £3.12bn. However, these impressive-looking numbers are skewed by a low base year. Revenues absolutely plunged to £2.23bn during the Covid-19 pandemic last year.</p>
<p>News on its dividend also looks positive. After cutting dividends to 50p in 2020, Bellway is now offering a proposed total dividend per share of 117.5p. This is still below its 2019 level of 1504p, but represents a whopping rise of 135%. Its preliminary results also announced a target to return one-third of after-tax profits to shareholders in dividend payments over the next two financial years.<span class="Apple-converted-space"> </span></p>
<p>The share price is currently at around 3,400p, having fallen to under 2,000p as the impacts of the Covid-19 pandemic became clear in March last year. It is yet to reach its pre-pandemic high of around 4,300p, last seen in February 2020. </p>
<h2>Strategic cunning</h2>
<p>These numbers look good, but its results reveal a strategic approach that I like even better. During the pandemic, it took a ‘front-footed’ approach to land acquisition, and bought up a record 20,000 sites in the year to 31 July 2021. Compare this to <strong>Vistry</strong>, which acquired around a quarter of the number of sites over the same period, and the boldness of this move becomes even more impressive. It is now sitting on a land-bank of almost 90,000 sites, leaving them well placed to respond to periods of high demand over the coming years.</p>
<p>It has also been strategic about positioning itself to offer better value homes. Bellway report that it is aiming to offer a more affordable mix of products in advance of the Help to Buy scheme expiring in March 2023. It is already reporting a slightly lower average selling price for the year ahead (£295,000 vs £306,479 last year) as a result.</p>
<h2>A bumpy road ahead?</h2>
<p>But could storm clouds lie on the horizon for the UK property market? The first problem on the cards is the higher steel and timber prices arising from a combination of shortages and soaring global demand as the economy reopens.</p>
<p>Then there is the issue of labour shortages due to self-isolation requirements. Preliminary results also flag the issue of heavy goods vehicle drivers and unreliable fuel supplies. These have combined to mean that material availability is under threat. Bellway believes that these are manageable through good procurement disciplines and forward planning, but accepts that construction output in early 2022 will be similar to 2021 levels.</p>
<p>Housing demand is also vulnerable to a stalling economic recovery. With higher interest rates potentially just around the corner, could higher monthly repayments leave consumers less willing to take on mortgage debt? Fears about ‘stagflation’ could also shake confidence and lead buyers to put off huge purchases. If so, housing demand could falter over the coming months.<span class="Apple-converted-space"> </span></p>
<p>I am certainly impressed with Bellway’s strategic planning and the land bank it has built up. As I have written <a href="https://staging.www.fool.co.uk/2021/09/09/forget-buying-a-house-im-investing-in-the-rising-property-market-through-this-ftse-250-stock/">before</a>, I think investing in house builders can be a neat way of gaining extra exposure to the property market without buying a place myself. But does this additional exposure still make sense? I’m on the fence!<span class="Apple-converted-space"> </span></p>
<div style="background-color:#ffffff;width:100%;padding:20px 20px 20px 20px;margin:20px 0px 20px 0px;border-top:0px solid #dddddd;border-right:0px solid #dddddd;border-bottom:0px solid #dddddd;border-left:0px solid #dddddd;border-radius:0px;box-shadow:none" class="wp-block-custom-block-collection-presentational-card">
<h2 class="wp-block-heading" id="h-passive-income-stocks-our-picks">Passive income stocks: our picks</h2>



<p>Do you like the idea of dividend income?</p>



<p>The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?</p>



<p>If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…</p>



<p>Then we think you’ll want to see this report inside <em>Motley Fool Share Advisor</em> — ‘<strong>5 Essential Stocks For Passive Income Seekers</strong>’.</p>



<p>What’s more, today we’re giving away one of these stock picks, absolutely free!</p>



<div class="wp-block-custom-block-collection-cta-button"><a href="https://uk.foolpitches.com/r?e=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_c291cmNlPWl1a3NwcDc0MTAwMDAxMjQmYWRuYW1lPXVrX3NhX3Bhc3NpdmVpbmNvbWVfbm90aWNrZXIyNWVzc2VudGlhbHN0b2Nrc18yJnBsYWNlbWVudD1waXRjaCZjb252PSVjb252ZXJzaW9uaWQlJnJlZlVybD0vMjAyNS8wMy8wNS81LXVuZGVyLXRoZS1yYWRhci11ay1zaGFyZXMtdGhhdC1kZXNlcnZlLW1vcmUtYXR0ZW50aW9uLyZpbXByZXNzaW9uX2lkPWQ4Mzg4MTdiZDJjNDQxZjY4YjNmMTNmNzM1MjI2YWI5JmZsaWdodF9pZD0zMzU5OTk5ODgmYWRfaWQ9MzQ1OTE2NjY1JmNhbXBhaWduX2lkPTExNDc2ODA3MyJ9&amp;s=FTjUG1r79x9PvnGWeISpr8u0M0g" style="background-color:#5fa85d;width:fit-content;display:inline-flex;cursor:pointer;justify-content:center;align-items:center;transition:all 0.3s ease;border-width:0px;border-style:solid;border-color:#000000;border-top-left-radius:4px;border-top-right-radius:4px;border-bottom-right-radius:4px;border-bottom-left-radius:4px;--hover-background-color:#358832;--pressed-background-color:#0cbf06;padding-top:12px;padding-right:24px;padding-bottom:12px;padding-left:24px;margin-top:0px;margin-right:auto;margin-bottom:12px;margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06">
<p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">Get your free passive income stock pick</p>
</a></div>



<p class="has-text-color has-p-small-font-size" style="color:#767676">* Returns as of 2/20/25</p>



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</div><p><strong>More reading</strong></p><p><i>Hermione Taylor does not have a position in any of the shares mentioned. </i><em>The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://staging.www.fool.co.uk/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Why bank stocks are hot right now</title>
                <link>https://staging.www.fool.co.uk/2021/10/14/why-bank-stocks-are-hot-right-now/</link>
                                <pubDate>Thu, 14 Oct 2021 16:46:12 +0000</pubDate>
                <dc:creator><![CDATA[Hermione Taylor]]></dc:creator>
                		<category><![CDATA[Investing]]></category>

                <guid isPermaLink="false">https://staging.www.fool.co.uk/?p=248756</guid>
                                    <description><![CDATA[With banks announcing results, I’m looking across the pond: can American banks give us an insight into what comes next for UK bank stocks? ]]></description>
                                                                                            <content:encoded><![CDATA[<p>It starts with the American banks: <strong>Bank of America</strong>, <strong>JP Morgan</strong>, and<strong> Goldman Sachs</strong> are all announcing third-quarter results this week. UK-listed banks will follow with <strong>HSBC</strong> (<a class="tickerized-link" href="https://staging.www.fool.co.uk/tickers/lse-hsba/">LSE: HSBA</a>), <strong>NatWest</strong> and <strong>Lloyds</strong> presenting theirs towards the end of the month.</p>
<p>I’m keeping a close eye on American banks’ earnings reports and wondering if they can provide an insight into what comes next for UK bank stocks.</p>
<h2>US bank stock opportunities<span class="Apple-converted-space"> </span></h2>
<p>According to US reports, a few key threats and opportunities are emerging for banks across the pond.</p>
<p>Firstly, the opportunities. The US Federal Reserve is indicating that it expects to start raising interest rates sometime next year. This is usually good news for banks: when interest rates are higher, they can expand profit margins by charging steeper rates on loans. </p>
<p>Last week saw the first suggestion that interest rates could rise as soon as <a href="https://www.theguardian.com/business/2021/oct/12/markets-pencil-in-uk-interest-rate-rise-in-days-before-christmas">December</a> in the UK, meaning UK-listed bank stocks could also benefit. </p>
<p>A US jobs report also came out last week, suggesting falling unemployment. This is good news for bank stocks: they tend to be <a href="https://www.fool.com/investing/stock-market/market-sectors/financials/bank-stocks/">cyclical</a>, performing better as the economy grows.<span class="Apple-converted-space"> </span></p>
<h2>US bank stock risks</h2>
<p>And now to the risks. What concerns are on analysts’ radars as US banks announce their third-quarter earnings and what could these suggest to us about UK bank performance?</p>
<p>The cyclical nature of bank stocks leaves them vulnerable if economic recovery falters. This could again be a useful lesson for the UK. With high energy prices and fears about rising inflation, our macroeconomic recovery remains uncertain.</p>
<p>Rising costs at US banks seem to be a concern, driven by competition with fintech stocks for both workers and customers.</p>
<p>Will these costs prove difficult to rein in? Or will they prove a sound investment in the future, and increase competitiveness in the long run? At the moment, it is difficult to tell.<span class="Apple-converted-space"> </span></p>
<h2>Any insights for UK banks? </h2>
<p>So what insights do these third-quarter earnings reports give us into UK bank performance? With its strong investment banking presence, I am wondering if they might be most relevant to HSBC.<span class="Apple-converted-space"> </span></p>
<h2>HSBC</h2>
<p>If third-quarter results follow the same pattern as their colleagues across the pond, we could see HSBC reporting increased costs.</p>
<p>HSBC’s second-quarter results revealed an increase in operating costs due to higher performance related pay, suggesting that it is also facing the same battle to retain staff. It also showed a 4% increase in technology spending, taking the total to $3bn over the first half of the year. </p>
<p>But with HSBC heavily exposed to China, I am reminding myself that there are more forces at play. Its share price fell to a five-year low in September as panic about Evergrande intensified, though it has since rallied, and is approaching its 12-month high of 455p.<span class="Apple-converted-space"> </span></p>
<h2>Not a crystal ball </h2>
<p>All in all, third-quarter reports from US banks aren’t a crystal ball. But they do provide some interesting insights into the forces impacting banks in the US. Higher wage costs, increased tech investments, and an uncertain economic recovery could all prove key themes as UK-listed banks announce earnings later in the month.<span class="Apple-converted-space"> </span></p>
<div style="background-color:#ffffff;width:100%;padding:20px 20px 20px 20px;margin:20px 0px 20px 0px;border-top:0px solid #dddddd;border-right:0px solid #dddddd;border-bottom:0px solid #dddddd;border-left:0px solid #dddddd;border-radius:0px;box-shadow:none" class="wp-block-custom-block-collection-presentational-card">
<h2 class="wp-block-heading" id="h-passive-income-stocks-our-picks">Passive income stocks: our picks</h2>



<p>Do you like the idea of dividend income?</p>



<p>The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?</p>



<p>If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…</p>



<p>Then we think you’ll want to see this report inside <em>Motley Fool Share Advisor</em> — ‘<strong>5 Essential Stocks For Passive Income Seekers</strong>’.</p>



<p>What’s more, today we’re giving away one of these stock picks, absolutely free!</p>



<div class="wp-block-custom-block-collection-cta-button"><a href="https://uk.foolpitches.com/r?e=eyJ2IjoiMS4xMiIsImF2IjoyMDI0MjQ2LCJhdCI6MTY4MCwiYnQiOjAsImNtIjoxMTQ3NjgwNzMsImNoIjo1ODUwMiwiY2siOnt9LCJjciI6MTY1Mjk5MzA0LCJkaSI6ImQ4Mzg4MTdiZDJjNDQxZjY4YjNmMTNmNzM1MjI2YWI5IiwiZGoiOjAsImlpIjoiNzIxZjU2NjJmZTc2NDQ0Zjg3YTFlMGU2OTY2ZmFjZmQiLCJkbSI6MywiZmMiOjM0NTkxNjY2NSwiZmwiOjMzNTk5OTk4OCwiaXAiOiI3My4yNS4yMjUuMzAiLCJrdyI6ImNhdGVnb3J5LmludmVzdGluZyxjYXRlZ29yeS50b3Atc3RvY2tzLHBvc3RfdGFnLmVkaXRvcnMtY2hvaWNlLHRpY2tlcnNfZ2xvYmFsLmxzZS1jYW1sLHRpY2tlcnNfZ2xvYmFsLmxzZS1mdGMsdGlja2Vyc19nbG9iYWwubHNlLW94Yix0aWNrZXJzX2dsb2JhbC5sc2UtdGJjZyx0aWNrZXJzX2dsb2JhbC5sc2UteXUscGFydG5lci1mZWVkcy5kYmMtbWVkaWEscGFydG5lci1mZWVkcy5maW5lY28scGFydG5lci1mZWVkcy5mbGlwYm9hcmQscGFydG5lci1mZWVkcy5tc24scGFydG5lci1mZWVkcy5zaGFyZXNpZ2h0LHBhcnRuZXItZmVlZHMueWFob28tdWsiLCJudyI6MTA5OTYsInBjIjo5Miwib3AiOjkyLCJtcCI6OTIsImVjIjowLCJnbSI6MCwiZXAiOm51bGwsInByIjoyMzI0MDYsInJ0Ijo2LCJycyI6NTAwLCJzYSI6IjU4Iiwic2IiOiJpLTA0MTJlZTUxZGFjODZkNTJjIiwic3AiOjQxNjc4ODAsInN0IjoxMTkxNDEyLCJ0ciI6dHJ1ZSwidWsiOiIxMWIwMmY0Mi00MWQ2LTQ4YTMtOTcwOS0xMjAyNGFkMTg2ZGEiLCJ0cyI6MTc0MTg5MjE3NjQ4NywicG4iOiJrZXZlbC1hY3Rpb24tNiIsImdjIjp0cnVlLCJnQyI6dHJ1ZSwiZ3MiOiJub25lIiwidHoiOiJVVEMiLCJ1dSI6Ii8yMDI1LzAzLzA1LzUtdW5kZXItdGhlLXJhZGFyLXVrLXNoYXJlcy10aGF0LWRlc2VydmUtbW9yZS1hdHRlbnRpb24vIiwidXIiOiJodHRwczovL3d3dy5mb29sLmNvLnVrL2ZyZWUtc3RvY2stcmVwb3J0LzUtZXNzZW50aWFsLXN0b2Nrcy1mb3ItcGFzc2l2ZS1pbmNvbWUtc2Vla2Vycy8_c291cmNlPWl1a3NwcDc0MTAwMDAxMjQmYWRuYW1lPXVrX3NhX3Bhc3NpdmVpbmNvbWVfbm90aWNrZXIyNWVzc2VudGlhbHN0b2Nrc18yJnBsYWNlbWVudD1waXRjaCZjb252PSVjb252ZXJzaW9uaWQlJnJlZlVybD0vMjAyNS8wMy8wNS81LXVuZGVyLXRoZS1yYWRhci11ay1zaGFyZXMtdGhhdC1kZXNlcnZlLW1vcmUtYXR0ZW50aW9uLyZpbXByZXNzaW9uX2lkPWQ4Mzg4MTdiZDJjNDQxZjY4YjNmMTNmNzM1MjI2YWI5JmZsaWdodF9pZD0zMzU5OTk5ODgmYWRfaWQ9MzQ1OTE2NjY1JmNhbXBhaWduX2lkPTExNDc2ODA3MyJ9&amp;s=FTjUG1r79x9PvnGWeISpr8u0M0g" style="background-color:#5fa85d;width:fit-content;display:inline-flex;cursor:pointer;justify-content:center;align-items:center;transition:all 0.3s ease;border-width:0px;border-style:solid;border-color:#000000;border-top-left-radius:4px;border-top-right-radius:4px;border-bottom-right-radius:4px;border-bottom-left-radius:4px;--hover-background-color:#358832;--pressed-background-color:#0cbf06;padding-top:12px;padding-right:24px;padding-bottom:12px;padding-left:24px;margin-top:0px;margin-right:auto;margin-bottom:12px;margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06">
<p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">Get your free passive income stock pick</p>
</a></div>



<p class="has-text-color has-p-small-font-size" style="color:#767676">* Returns as of 2/20/25</p>



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</div><p><strong>More reading</strong></p><p><i>Hermione Taylor does not have a position in any of the shares mentioned. </i><em>Bank of America is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool UK has recommended HSBC Holdings and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://staging.www.fool.co.uk/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Auto Trader could be a monster stock in the making </title>
                <link>https://staging.www.fool.co.uk/2021/10/14/auto-trader-could-be-a-monster-stock-in-the-making/</link>
                                <pubDate>Thu, 14 Oct 2021 15:34:09 +0000</pubDate>
                <dc:creator><![CDATA[Hermione Taylor]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://staging.www.fool.co.uk/?p=248771</guid>
                                    <description><![CDATA[With new car shortages on the cards and news reports of soaring demand for electric cars, is Auto Trader one to watch?]]></description>
                                                                                            <content:encoded><![CDATA[<img width="1200" height="675" src="https://staging.www.fool.co.uk/wp-content/uploads/2021/01/Car-lined-street1.jpg" class="attachment-rss-thumbnail size-rss-thumbnail wp-post-image" alt="Typical street lined with terraced houses and parked cars" style="float:left; margin:0 15px 15px 0;" decoding="async" fetchpriority="high" /><p><strong>Auto Trader </strong>(<a class="tickerized-link" href="https://staging.www.fool.co.uk/tickers/lse-auto/">LSE: AUTO</a>) had a tough pandemic. 2020 saw the share price plummet from around 590p to 380p as lockdown hit &#8211; a fall of nearly 35%. But its recovery has since been strong, thanks in part to pent up demand for cars. The Auto Trader share price hit a five-year high of 660p in July, and is now sitting at 590p. Could this be a monster stock in the making?<span class="Apple-converted-space"> </span></p>
<h2>Energy crisis</h2>
<p>It’s not just the share price movements that have <a href="https://staging.www.fool.co.uk/investing/2021/10/08/why-im-looking-to-buy-these-3-electric-vehicle-stocks-now/">caught my eye</a>, its Auto Trader&#8217;s long-term prospects. </p>
<p>Firstly, the energy crisis could spell a big opportunity for Auto Trader. I recently read that it takes almost a tonne of steel to make a new car. High energy prices are making steel production so unaffordable that plants are at risk of shut-down, meaning production of new cars could grind to a halt. </p>
<p>Almost 90% of the cars traded on Auto Trader are used. Does this have the potential to turn Auto Trader into a monster stock if new car shortages emerge?<span class="Apple-converted-space"> </span></p>
<p>I’m not so sure. Can we really assume that demand for used cars will continue to soar? There were news reports about huge pent up demand in the spring as lockdown eased.<span class="Apple-converted-space"> But s</span>even months down the line, has this worked its way through?</p>
<h2>Rate hike<span class="Apple-converted-space"> </span></h2>
<p>Reports also emerged last week that the Bank of England is considering raising interest rates &#8211; and that this could happen as soon as the end of the year. I suspect that this could leave consumers less willing to purchase cars on finance deals, as repayments get more expensive.<span class="Apple-converted-space"> </span>These are a key offering of the Auto Trader platform, meaning that higher interest rates could hit its profitability going forward.<span class="Apple-converted-space"> </span></p>
<p>Fuel shortages are still rumbling on too, rendering car travel more unpredictable. Is there too much uncertainty for customers to consider buying a new car at the moment? </p>
<h2>Electric future</h2>
<p>Despite these risks, I think that Auto Trader could still be a good long-term bet, thanks to its clever positioning in the electric car market.<span class="Apple-converted-space"> </span></p>
<p>Last weekend, Auto Trader announced that searches for electric vehicles hit their highest ever levels, thanks to motorway protests and fuel shortages dominating the news.<span class="Apple-converted-space"> </span></p>
<p>Its website reveals a dedicated section for electric car shopping, and its <a href="https://plc.autotrader.co.uk/media/2269/aut-ar2021-web.pdf">Annual Report</a> also lists the move to electric as the number one strategic priority.<span class="Apple-converted-space"> </span></p>
<h2>A monster stock? </h2>
<p>The combination of a new car shortage and higher demand for electric cars could leave Auto Trader exceptionally well placed &#8211; and its Annual Report suggests it is thinking along the same strategic lines. </p>
<p>But there are clear risks too &#8211; could higher interest rates suppress car demand? And could fuel shortages reduce demand for driving all together?<span class="Apple-converted-space"> </span></p>
<p>Perhaps Auto Trader is more of a cautious long-term bet for my portfolio than a monster stock.<span class="Apple-converted-space"> </span></p>
<div style="background-color:#ffffff;width:100%;padding:20px 20px 20px 20px;margin:20px 0px 20px 0px;border-top:0px solid #dddddd;border-right:0px solid #dddddd;border-bottom:0px solid #dddddd;border-left:0px solid #dddddd;border-radius:0px;box-shadow:none" class="wp-block-custom-block-collection-presentational-card">
<h2 class="wp-block-heading" id="h-passive-income-stocks-our-picks">Passive income stocks: our picks</h2>



<p>Do you like the idea of dividend income?</p>



<p>The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?</p>



<p>If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…</p>



<p>Then we think you’ll want to see this report inside <em>Motley Fool Share Advisor</em> — ‘<strong>5 Essential Stocks For Passive Income Seekers</strong>’.</p>



<p>What’s more, today we’re giving away one of these stock picks, absolutely free!</p>



<div class="wp-block-custom-block-collection-cta-button"><a href="https://uk.foolpitches.com/r?e=eyJ2IjoiMS4xMiIsImF2IjoyMDI0MjQ2LCJhdCI6MTY4MCwiYnQiOjAsImNtIjoxMTQ3NjgwNzMsImNoIjo1ODUwMiwiY2siOnt9LCJjciI6MTY1Mjk5MzA0LCJkaSI6ImQ4Mzg4MTdiZDJjNDQxZjY4YjNmMTNmNzM1MjI2YWI5IiwiZGoiOjAsImlpIjoiNzIxZjU2NjJmZTc2NDQ0Zjg3YTFlMGU2OTY2ZmFjZmQiLCJkbSI6MywiZmMiOjM0NTkxNjY2NSwiZmwiOjMzNTk5OTk4OCwiaXAiOiI3My4yNS4yMjUuMzAiLCJrdyI6ImNhdGVnb3J5LmludmVzdGluZyxjYXRlZ29yeS50b3Atc3RvY2tzLHBvc3RfdGFnLmVkaXRvcnMtY2hvaWNlLHRpY2tlcnNfZ2xvYmFsLmxzZS1jYW1sLHRpY2tlcnNfZ2xvYmFsLmxzZS1mdGMsdGlja2Vyc19nbG9iYWwubHNlLW94Yix0aWNrZXJzX2dsb2JhbC5sc2UtdGJjZyx0aWNrZXJzX2dsb2JhbC5sc2UteXUscGFydG5lci1mZWVkcy5kYmMtbWVkaWEscGFydG5lci1mZWVkcy5maW5lY28scGFydG5lci1mZWVkcy5mbGlwYm9hcmQscGFydG5lci1mZWVkcy5tc24scGFydG5lci1mZWVkcy5zaGFyZXNpZ2h0LHBhcnRuZXItZmVlZHMueWFob28tdWsiLCJudyI6MTA5OTYsInBjIjo5Miwib3AiOjkyLCJtcCI6OTIsImVjIjowLCJnbSI6MCwiZXAiOm51bGwsInByIjoyMzI0MDYsInJ0Ijo2LCJycyI6NTAwLCJzYSI6IjU4Iiwic2IiOiJpLTA0MTJlZTUxZGFjODZkNTJjIiwic3AiOjQxNjc4ODAsInN0IjoxMTkxNDEyLCJ0ciI6dHJ1ZSwidWsiOiIxMWIwMmY0Mi00MWQ2LTQ4YTMtOTcwOS0xMjAyNGFkMTg2ZGEiLCJ0cyI6MTc0MTg5MjE3NjQ4NywicG4iOiJrZXZlbC1hY3Rpb24tNiIsImdjIjp0cnVlLCJnQyI6dHJ1ZSwiZ3MiOiJub25lIiwidHoiOiJVVEMiLCJ1dSI6Ii8yMDI1LzAzLzA1LzUtdW5kZXItdGhlLXJhZGFyLXVrLXNoYXJlcy10aGF0LWRlc2VydmUtbW9yZS1hdHRlbnRpb24vIiwidXIiOiJodHRwczovL3d3dy5mb29sLmNvLnVrL2ZyZWUtc3RvY2stcmVwb3J0LzUtZXNzZW50aWFsLXN0b2Nrcy1mb3ItcGFzc2l2ZS1pbmNvbWUtc2Vla2Vycy8_c291cmNlPWl1a3NwcDc0MTAwMDAxMjQmYWRuYW1lPXVrX3NhX3Bhc3NpdmVpbmNvbWVfbm90aWNrZXIyNWVzc2VudGlhbHN0b2Nrc18yJnBsYWNlbWVudD1waXRjaCZjb252PSVjb252ZXJzaW9uaWQlJnJlZlVybD0vMjAyNS8wMy8wNS81LXVuZGVyLXRoZS1yYWRhci11ay1zaGFyZXMtdGhhdC1kZXNlcnZlLW1vcmUtYXR0ZW50aW9uLyZpbXByZXNzaW9uX2lkPWQ4Mzg4MTdiZDJjNDQxZjY4YjNmMTNmNzM1MjI2YWI5JmZsaWdodF9pZD0zMzU5OTk5ODgmYWRfaWQ9MzQ1OTE2NjY1JmNhbXBhaWduX2lkPTExNDc2ODA3MyJ9&amp;s=FTjUG1r79x9PvnGWeISpr8u0M0g" style="background-color:#5fa85d;width:fit-content;display:inline-flex;cursor:pointer;justify-content:center;align-items:center;transition:all 0.3s ease;border-width:0px;border-style:solid;border-color:#000000;border-top-left-radius:4px;border-top-right-radius:4px;border-bottom-right-radius:4px;border-bottom-left-radius:4px;--hover-background-color:#358832;--pressed-background-color:#0cbf06;padding-top:12px;padding-right:24px;padding-bottom:12px;padding-left:24px;margin-top:0px;margin-right:auto;margin-bottom:12px;margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06">
<p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">Get your free passive income stock pick</p>
</a></div>



<p class="has-text-color has-p-small-font-size" style="color:#767676">* Returns as of 2/20/25</p>



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</div><p><strong>More reading</strong></p><p><i>Hermione Taylor does not have a position in any of the shares mentioned.</i></p>
<p><em>The Motley Fool UK has recommended Auto Trader. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://staging.www.fool.co.uk/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Does the BP share price jump make sense?</title>
                <link>https://staging.www.fool.co.uk/2021/10/08/for-friday-does-the-bp-share-price-jump-make-sense/</link>
                                <pubDate>Fri, 08 Oct 2021 15:06:45 +0000</pubDate>
                <dc:creator><![CDATA[Hermione Taylor]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://staging.www.fool.co.uk/?p=248141</guid>
                                    <description><![CDATA[With its share price up by 17% in a month and fuel shortages persisting, I’m asking myself whether the BP share price jump means it's started a long-term move upwards.]]></description>
                                                                                            <content:encoded><![CDATA[<p>If you spent the weekend queuing for petrol like me, you might have also found yourself killing time by looking at the petrol prices on the signs at the forecourt. The RAC warned this week that fuel prices could reach an all-time high by Christmas. And the average price of a full tank of fuel is now about £12 higher than a year ago. With <b>BP</b> (<a class="tickerized-link" href="https://staging.www.fool.co.uk/tickers/lse-bp/">LSE: BP</a>) operating 1,200 petrol stations in the UK, it seems the company is well placed to profit from both higher fuel prices and demand.</p>
<p>But do rising fuel prices completely explain its share price jump. And could BP work for me as a longer-term investment?<span class="Apple-converted-space"> </span></p>
<h2>What made the BP share price rise?</h2>
<p>Over the past 12 months, the BP share price has jumped from around 220p to 344p. However, most of the growth happened this month, with the share price still under 300p at the start of September. The first thing that strikes me is how well-placed BP is to benefit from increased demand for petrol. This is thanks to its strong presence in the UK petrol market. I bet a lot of people have been thinking the same thing. This led me to wonder if the BP share price jump might be down to the <a href="https://www.economicsnetwork.ac.uk/sites/default/files/Ashley/6%20References%20for%20KBC.pdf">Keynesian Beauty Contest</a> theory of the stock market.<span class="Apple-converted-space"> </span></p>
<p>Celebrated economist Keynes came up with an analogy for the stock market based on a contest run by a London newspaper. In this contest, entrants were asked to choose the six most beautiful women from a set of 100. Those that chose the most popular faces would then be entered into a raffle to win a prize. Keynes argued that the skill was not actually in picking the most beautiful face, but rather picking the face that <i>most people </i>thought the most beautiful. His theory was that investors can behave in a similar way. They choose stocks based not on fundamentals, but on predictions of what they think the market will do anyway. Long queues at petrol pumps may persuade investors more people will want BP shares. So could this be enough to make the BP share price jump again?<span class="Apple-converted-space"> </span></p>
<p>I’m not so sure. First, fundamentals matter to me. I&#8217;m very aware that BP operates on a bigger scale than just the UK and is about more than retail petrol sales. So giving UK petrol problems too much weighting could be a mistake. In the longer term, BP remains vulnerable to changes in oil prices. Yes, oil prices have just broken the $80 a dollar mark for the first time in almost two years. But prices fell to just over <a href="https://www.bbc.co.uk/news/topics/cmjpj223708t/oil">$20</a> a barrel during lockdown. This hit BP’s profits hard, and it posted a <a href="https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/investors/bp-second-quarter-2021-results.pdf">second quarter loss </a>of $16,848m last year. Q2 results look brighter this year and it.s hoping an oil price above $60 a barrel will allow it to deliver a dividend of 4% per share. Will oil prices stay high? If the recovery continues at pace, I think they could; but this remains a considerable risk.<span class="Apple-converted-space"> </span></p>
<p>So where does that leave me as a potential buyer? Overall, I wonder if I&#8217;ve missed the boat. The BP share price may jump again in the short term, but I&#8217;m not convinced long term. And I’m reluctant to get involved in a Keynesian beauty contest!<span class="Apple-converted-space"> </span></p>
<div style="background-color:#ffffff;width:100%;padding:20px 20px 20px 20px;margin:20px 0px 20px 0px;border-top:0px solid #dddddd;border-right:0px solid #dddddd;border-bottom:0px solid #dddddd;border-left:0px solid #dddddd;border-radius:0px;box-shadow:none" class="wp-block-custom-block-collection-presentational-card">
<h2 class="wp-block-heading" id="h-passive-income-stocks-our-picks">Passive income stocks: our picks</h2>



<p>Do you like the idea of dividend income?</p>



<p>The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?</p>



<p>If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…</p>



<p>Then we think you’ll want to see this report inside <em>Motley Fool Share Advisor</em> — ‘<strong>5 Essential Stocks For Passive Income Seekers</strong>’.</p>



<p>What’s more, today we’re giving away one of these stock picks, absolutely free!</p>



<div class="wp-block-custom-block-collection-cta-button"><a href="https://uk.foolpitches.com/r?e=eyJ2IjoiMS4xMiIsImF2IjoyMDI0MjQ2LCJhdCI6MTY4MCwiYnQiOjAsImNtIjoxMTQ3NjgwNzMsImNoIjo1ODUwMiwiY2siOnt9LCJjciI6MTY1Mjk5MzA0LCJkaSI6ImQ4Mzg4MTdiZDJjNDQxZjY4YjNmMTNmNzM1MjI2YWI5IiwiZGoiOjAsImlpIjoiNzIxZjU2NjJmZTc2NDQ0Zjg3YTFlMGU2OTY2ZmFjZmQiLCJkbSI6MywiZmMiOjM0NTkxNjY2NSwiZmwiOjMzNTk5OTk4OCwiaXAiOiI3My4yNS4yMjUuMzAiLCJrdyI6ImNhdGVnb3J5LmludmVzdGluZyxjYXRlZ29yeS50b3Atc3RvY2tzLHBvc3RfdGFnLmVkaXRvcnMtY2hvaWNlLHRpY2tlcnNfZ2xvYmFsLmxzZS1jYW1sLHRpY2tlcnNfZ2xvYmFsLmxzZS1mdGMsdGlja2Vyc19nbG9iYWwubHNlLW94Yix0aWNrZXJzX2dsb2JhbC5sc2UtdGJjZyx0aWNrZXJzX2dsb2JhbC5sc2UteXUscGFydG5lci1mZWVkcy5kYmMtbWVkaWEscGFydG5lci1mZWVkcy5maW5lY28scGFydG5lci1mZWVkcy5mbGlwYm9hcmQscGFydG5lci1mZWVkcy5tc24scGFydG5lci1mZWVkcy5zaGFyZXNpZ2h0LHBhcnRuZXItZmVlZHMueWFob28tdWsiLCJudyI6MTA5OTYsInBjIjo5Miwib3AiOjkyLCJtcCI6OTIsImVjIjowLCJnbSI6MCwiZXAiOm51bGwsInByIjoyMzI0MDYsInJ0Ijo2LCJycyI6NTAwLCJzYSI6IjU4Iiwic2IiOiJpLTA0MTJlZTUxZGFjODZkNTJjIiwic3AiOjQxNjc4ODAsInN0IjoxMTkxNDEyLCJ0ciI6dHJ1ZSwidWsiOiIxMWIwMmY0Mi00MWQ2LTQ4YTMtOTcwOS0xMjAyNGFkMTg2ZGEiLCJ0cyI6MTc0MTg5MjE3NjQ4NywicG4iOiJrZXZlbC1hY3Rpb24tNiIsImdjIjp0cnVlLCJnQyI6dHJ1ZSwiZ3MiOiJub25lIiwidHoiOiJVVEMiLCJ1dSI6Ii8yMDI1LzAzLzA1LzUtdW5kZXItdGhlLXJhZGFyLXVrLXNoYXJlcy10aGF0LWRlc2VydmUtbW9yZS1hdHRlbnRpb24vIiwidXIiOiJodHRwczovL3d3dy5mb29sLmNvLnVrL2ZyZWUtc3RvY2stcmVwb3J0LzUtZXNzZW50aWFsLXN0b2Nrcy1mb3ItcGFzc2l2ZS1pbmNvbWUtc2Vla2Vycy8_c291cmNlPWl1a3NwcDc0MTAwMDAxMjQmYWRuYW1lPXVrX3NhX3Bhc3NpdmVpbmNvbWVfbm90aWNrZXIyNWVzc2VudGlhbHN0b2Nrc18yJnBsYWNlbWVudD1waXRjaCZjb252PSVjb252ZXJzaW9uaWQlJnJlZlVybD0vMjAyNS8wMy8wNS81LXVuZGVyLXRoZS1yYWRhci11ay1zaGFyZXMtdGhhdC1kZXNlcnZlLW1vcmUtYXR0ZW50aW9uLyZpbXByZXNzaW9uX2lkPWQ4Mzg4MTdiZDJjNDQxZjY4YjNmMTNmNzM1MjI2YWI5JmZsaWdodF9pZD0zMzU5OTk5ODgmYWRfaWQ9MzQ1OTE2NjY1JmNhbXBhaWduX2lkPTExNDc2ODA3MyJ9&amp;s=FTjUG1r79x9PvnGWeISpr8u0M0g" style="background-color:#5fa85d;width:fit-content;display:inline-flex;cursor:pointer;justify-content:center;align-items:center;transition:all 0.3s ease;border-width:0px;border-style:solid;border-color:#000000;border-top-left-radius:4px;border-top-right-radius:4px;border-bottom-right-radius:4px;border-bottom-left-radius:4px;--hover-background-color:#358832;--pressed-background-color:#0cbf06;padding-top:12px;padding-right:24px;padding-bottom:12px;padding-left:24px;margin-top:0px;margin-right:auto;margin-bottom:12px;margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06">
<p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">Get your free passive income stock pick</p>
</a></div>



<p class="has-text-color has-p-small-font-size" style="color:#767676">* Returns as of 2/20/25</p>



<style>
.custom-cta-button p {
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</div><p><strong>More reading</strong></p><p><i>Hermione Taylor does not have a position in any of the shares mentioned. </i><em>The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://staging.www.fool.co.uk/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Why I’m looking to buy these 3 electric vehicle stocks now</title>
                <link>https://staging.www.fool.co.uk/2021/10/08/why-im-looking-to-buy-these-3-electric-vehicle-stocks-now/</link>
                                <pubDate>Fri, 08 Oct 2021 15:05:39 +0000</pubDate>
                <dc:creator><![CDATA[Hermione Taylor]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://staging.www.fool.co.uk/?p=248147</guid>
                                    <description><![CDATA[Fuel shortages have dominated the news, meaning surging interest in electric cars. Here are three electric vehicle stocks I’m looking to buy.]]></description>
                                                                                            <content:encoded><![CDATA[<p>It looks like the future really might be electric. According to <b>Auto Trader </b>(<a class="tickerized-link" href="https://staging.www.fool.co.uk/tickers/lse-auto/">LSE:AUTO</a>), searches for electric vehicles hit their highest ever levels as fuel shortages made the news. Even a Luddite like me can start to imagine that my next car might be electric, which has got me thinking about how I could invest in electric vehicle stocks.</p>
<h2>The electric supercar</h2>
<p>My first thought is <b>Aston Martin</b> (<a class="tickerized-link" href="https://staging.www.fool.co.uk/tickers/lse-aml/">LSE: AML</a>), which will produce its first fully electric car by 2025. This is in anticipation of the UK’s 2030 ban on the sale of new non-hybrid petrol and diesel cars. In October 2020, Mercedes took a 20% stake in <a href="https://www.bbc.co.uk/news/business-54712376">Aston Martin</a>, and the car maker is hopeful that this partnership will give them the edge over rivals by providing technology and even electric vehicle batteries. That said, I am wary of the risks of investing in a firm at the supercar edge of the market. Going electric might make sense for a city run-around, but will supercar fans be persuaded? I’m not sure if even Aston Martin is convinced &#8211; it has committed to keep producing petrol engines for traditionalists even after the UK ban. Ferrari have also pledged to produce an electric supercar by 2025, intensifying competition.</p>
<h2>The original electric car</h2>
<p>No article on electric vehicle stocks would be complete without a look at <b>Tesla</b> (<a class="tickerized-link" href="https://staging.www.fool.co.uk/tickers/nasdaq-tsla/">NASDAQ: TSLA</a>). Its share price has soared from $426 12 months ago to $794 today. If I’m a believer in the electric vehicle revolution, should I add some to my portfolio now? Tesla has certainly been at the cutting edge of electric car innovation. At the time of writing, it looks possible that drivers could be weeks away from unlocking ‘full self-driving mode’ on certain models. But this technology is also under review in the US from the National Highway Transportation Safety Administration, and its share price could be vulnerable to the NHTSA’s findings. There is also the unpredictability of Elon Musk’s tweets, which have wiped <a href="https://www.bbc.co.uk/news/business-52504187">billions</a> off the Tesla share price in the past.</p>
<h2>The electric car marketplace</h2>
<p>Another possibility is Auto Trader, the online car marketplace. Its share price has faltered over the past 12 months, sitting at around the same level as last October (600p). Despite this, I think it could be an interesting long-term bet. Its 2021 annual report listed going electric as the number one <a href="https://plc.autotrader.co.uk/media/2269/aut-ar2021-web.pdf">strategic priority,</a> and its site now boasts a whole section on electric cars, allowing visitors to ‘discover the future of driving’. However, 90% of cars listed on Auto Trader are still used models: as electric vehicles are still a relatively new phenomenon, second hand models are only trickling onto the site. But as early adopters look to upgrade their models over the next few years, this will change. Auto Trader could prove a good electric vehicle-related stock to hold.<span class="Apple-converted-space"> </span></p>
<p>This week’s fuel shortages and motorway-blocking climate protestors suggest to me that electric vehicle stocks are worth a look. But if auto companies don’t move quickly enough, they could get left behind. I’m only looking to invest in the electric vehicles stocks that are moving into high gear.</p>
<div style="background-color:#ffffff;width:100%;padding:20px 20px 20px 20px;margin:20px 0px 20px 0px;border-top:0px solid #dddddd;border-right:0px solid #dddddd;border-bottom:0px solid #dddddd;border-left:0px solid #dddddd;border-radius:0px;box-shadow:none" class="wp-block-custom-block-collection-presentational-card">
<h2 class="wp-block-heading" id="h-passive-income-stocks-our-picks">Passive income stocks: our picks</h2>



<p>Do you like the idea of dividend income?</p>



<p>The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?</p>



<p>If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…</p>



<p>Then we think you’ll want to see this report inside <em>Motley Fool Share Advisor</em> — ‘<strong>5 Essential Stocks For Passive Income Seekers</strong>’.</p>



<p>What’s more, today we’re giving away one of these stock picks, absolutely free!</p>



<div class="wp-block-custom-block-collection-cta-button"><a href="https://uk.foolpitches.com/r?e=eyJ2IjoiMS4xMiIsImF2IjoyMDI0MjQ2LCJhdCI6MTY4MCwiYnQiOjAsImNtIjoxMTQ3NjgwNzMsImNoIjo1ODUwMiwiY2siOnt9LCJjciI6MTY1Mjk5MzA0LCJkaSI6ImQ4Mzg4MTdiZDJjNDQxZjY4YjNmMTNmNzM1MjI2YWI5IiwiZGoiOjAsImlpIjoiNzIxZjU2NjJmZTc2NDQ0Zjg3YTFlMGU2OTY2ZmFjZmQiLCJkbSI6MywiZmMiOjM0NTkxNjY2NSwiZmwiOjMzNTk5OTk4OCwiaXAiOiI3My4yNS4yMjUuMzAiLCJrdyI6ImNhdGVnb3J5LmludmVzdGluZyxjYXRlZ29yeS50b3Atc3RvY2tzLHBvc3RfdGFnLmVkaXRvcnMtY2hvaWNlLHRpY2tlcnNfZ2xvYmFsLmxzZS1jYW1sLHRpY2tlcnNfZ2xvYmFsLmxzZS1mdGMsdGlja2Vyc19nbG9iYWwubHNlLW94Yix0aWNrZXJzX2dsb2JhbC5sc2UtdGJjZyx0aWNrZXJzX2dsb2JhbC5sc2UteXUscGFydG5lci1mZWVkcy5kYmMtbWVkaWEscGFydG5lci1mZWVkcy5maW5lY28scGFydG5lci1mZWVkcy5mbGlwYm9hcmQscGFydG5lci1mZWVkcy5tc24scGFydG5lci1mZWVkcy5zaGFyZXNpZ2h0LHBhcnRuZXItZmVlZHMueWFob28tdWsiLCJudyI6MTA5OTYsInBjIjo5Miwib3AiOjkyLCJtcCI6OTIsImVjIjowLCJnbSI6MCwiZXAiOm51bGwsInByIjoyMzI0MDYsInJ0Ijo2LCJycyI6NTAwLCJzYSI6IjU4Iiwic2IiOiJpLTA0MTJlZTUxZGFjODZkNTJjIiwic3AiOjQxNjc4ODAsInN0IjoxMTkxNDEyLCJ0ciI6dHJ1ZSwidWsiOiIxMWIwMmY0Mi00MWQ2LTQ4YTMtOTcwOS0xMjAyNGFkMTg2ZGEiLCJ0cyI6MTc0MTg5MjE3NjQ4NywicG4iOiJrZXZlbC1hY3Rpb24tNiIsImdjIjp0cnVlLCJnQyI6dHJ1ZSwiZ3MiOiJub25lIiwidHoiOiJVVEMiLCJ1dSI6Ii8yMDI1LzAzLzA1LzUtdW5kZXItdGhlLXJhZGFyLXVrLXNoYXJlcy10aGF0LWRlc2VydmUtbW9yZS1hdHRlbnRpb24vIiwidXIiOiJodHRwczovL3d3dy5mb29sLmNvLnVrL2ZyZWUtc3RvY2stcmVwb3J0LzUtZXNzZW50aWFsLXN0b2Nrcy1mb3ItcGFzc2l2ZS1pbmNvbWUtc2Vla2Vycy8_c291cmNlPWl1a3NwcDc0MTAwMDAxMjQmYWRuYW1lPXVrX3NhX3Bhc3NpdmVpbmNvbWVfbm90aWNrZXIyNWVzc2VudGlhbHN0b2Nrc18yJnBsYWNlbWVudD1waXRjaCZjb252PSVjb252ZXJzaW9uaWQlJnJlZlVybD0vMjAyNS8wMy8wNS81LXVuZGVyLXRoZS1yYWRhci11ay1zaGFyZXMtdGhhdC1kZXNlcnZlLW1vcmUtYXR0ZW50aW9uLyZpbXByZXNzaW9uX2lkPWQ4Mzg4MTdiZDJjNDQxZjY4YjNmMTNmNzM1MjI2YWI5JmZsaWdodF9pZD0zMzU5OTk5ODgmYWRfaWQ9MzQ1OTE2NjY1JmNhbXBhaWduX2lkPTExNDc2ODA3MyJ9&amp;s=FTjUG1r79x9PvnGWeISpr8u0M0g" style="background-color:#5fa85d;width:fit-content;display:inline-flex;cursor:pointer;justify-content:center;align-items:center;transition:all 0.3s ease;border-width:0px;border-style:solid;border-color:#000000;border-top-left-radius:4px;border-top-right-radius:4px;border-bottom-right-radius:4px;border-bottom-left-radius:4px;--hover-background-color:#358832;--pressed-background-color:#0cbf06;padding-top:12px;padding-right:24px;padding-bottom:12px;padding-left:24px;margin-top:0px;margin-right:auto;margin-bottom:12px;margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06">
<p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">Get your free passive income stock pick</p>
</a></div>



<p class="has-text-color has-p-small-font-size" style="color:#767676">* Returns as of 2/20/25</p>



<style>
.custom-cta-button p {
  margin-bottom: 0 !important;
}
</style>
</div><p><strong>More reading</strong></p><p><em>Hermione Taylor does not have a position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Tesla. The Motley Fool UK has recommended Auto Trader. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://staging.www.fool.co.uk/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
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                                <title>Could panic buying trigger a stock market crash?</title>
                <link>https://staging.www.fool.co.uk/2021/10/08/could-panic-buying-trigger-a-stock-market-crash/</link>
                                <pubDate>Fri, 08 Oct 2021 14:49:42 +0000</pubDate>
                <dc:creator><![CDATA[Hermione Taylor]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://staging.www.fool.co.uk/?p=248214</guid>
                                    <description><![CDATA[Panic buying has hit the news again. Now I’m starting to wonder if the same behaviour could trigger a stock market crash…]]></description>
                                                                                            <content:encoded><![CDATA[<p>Panic buying is in the news again, and many of us faced queues at petrol stations over the weekend. This got me thinking &#8211; what triggers ‘panic buying’? Is it fair to call it that at all? And can the same behaviour lead to ‘panic selling’? If so&#8230; could we be looking at a stock market crash?</p>
<h2>Panic buying explained<span class="Apple-converted-space"> </span></h2>
<p>There is some interesting <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/ijcs.12669">research</a> on the psychology of panic buying, and a few drivers seem to stand out this year. </p>
<p>The first explanation is that panic buying is a safety blanket to help consumers deal with uncertainty. After all, we can’t control a pandemic or fuel shortages, but we can make sure we have well-stocked cupboards and a full tank of fuel.<span class="Apple-converted-space"> </span></p>
<p>Secondly, could it be down to ‘loss aversion’? This idea pops up quite often in the world of investing. Simply put, it argues that we care more about avoiding losses than getting equivalent gains. In other words, <em>missing out</em> on a pack of loo rolls feels much more significant than <em>securing</em> one.</p>
<p>Another explanation is that panic buying is simply down to herd mentality, and blindly following one another’s lead. But could it actually be rational? David Savage, a Professor of Behavioural Economics argues <a href="https://theconversation.com/stocking-up-to-prepare-for-a-crisis-isnt-panic-buying-its-actually-a-pretty-rational-choice-132437">yes</a>: if you are facing a lengthy period of Covid isolation or need petrol to get to work, stocking up makes sense.</p>
<h2>Too many loo rolls</h2>
<p>And the impacts of recent panic buying have spread over to the stock market too. Though up by around 20% over the past 12 months, the <strong>FTSE 350</strong> fell by 30% between mid February and 20 March as concerns about Covid grew. Despite the overall drop in the UK stock market, <a href="https://staging.www.fool.co.uk/investing/2020/03/31/will-panic-buying-help-the-sainsbury-share-price/">supermarkets</a> fared better as consumers stocked up &#8211; <strong>Morrisons</strong> saw its share price rise over the same period; as did <strong>Ocado</strong> and <strong>Sainsbury’s </strong>&#8211; though performance over the past 12 months has been mixed. Since petrol panic-buying has made the news, <strong>BP</strong>’s share price has also risen from 303p a month ago to 350p today, up around 40% over the past 12 months. </p>
<h2>Will the bubble burst?<span class="Apple-converted-space"> </span></h2>
<p>We see a sort of panic buying phenomenon in the stock market with share price bubbles. Here, investors fear missing out on an opportunity and rush to buy a certain stock. Increased demand for a share (driven by any of the causes listed above) leads to an increase in the share price and a ‘bubble’ can form.<span class="Apple-converted-space"> </span></p>
<p>On the other side of the coin, we can also see ‘panic selling’. Investors sell off shares, leading to increases in supply and price drops. Does the same psychology drive both?<span class="Apple-converted-space"> </span></p>
<p>It looks to me as though it can. Loss aversion can lead to investors selling stocks as the share price drops, to try and protect themselves from further price decreases. If you are interested in learning more, my colleague has written more about the psychology of loss aversion <a href="https://staging.www.fool.co.uk/investing/2019/12/27/is-confirmation-bias-sapping-your-portfolio/">here</a>. Herd mentality can also have an impact &#8211; if others are selling, should you join them?</p>
<p>At first glance, a loo roll stockpile and a stock market crash seem to have nothing in common. But I’m wondering now if the same psychology that leads to panic buying could feed into a stock market crash.<span class="Apple-converted-space"> </span></p>
<div style="background-color:#ffffff;width:100%;padding:20px 20px 20px 20px;margin:20px 0px 20px 0px;border-top:0px solid #dddddd;border-right:0px solid #dddddd;border-bottom:0px solid #dddddd;border-left:0px solid #dddddd;border-radius:0px;box-shadow:none" class="wp-block-custom-block-collection-presentational-card">
<h2 class="wp-block-heading" id="h-passive-income-stocks-our-picks">Passive income stocks: our picks</h2>



<p>Do you like the idea of dividend income?</p>



<p>The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?</p>



<p>If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…</p>



<p>Then we think you’ll want to see this report inside <em>Motley Fool Share Advisor</em> — ‘<strong>5 Essential Stocks For Passive Income Seekers</strong>’.</p>



<p>What’s more, today we’re giving away one of these stock picks, absolutely free!</p>



<div class="wp-block-custom-block-collection-cta-button"><a href="https://uk.foolpitches.com/r?e=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_c291cmNlPWl1a3NwcDc0MTAwMDAxMjQmYWRuYW1lPXVrX3NhX3Bhc3NpdmVpbmNvbWVfbm90aWNrZXIyNWVzc2VudGlhbHN0b2Nrc18yJnBsYWNlbWVudD1waXRjaCZjb252PSVjb252ZXJzaW9uaWQlJnJlZlVybD0vMjAyNS8wMy8wNS81LXVuZGVyLXRoZS1yYWRhci11ay1zaGFyZXMtdGhhdC1kZXNlcnZlLW1vcmUtYXR0ZW50aW9uLyZpbXByZXNzaW9uX2lkPWQ4Mzg4MTdiZDJjNDQxZjY4YjNmMTNmNzM1MjI2YWI5JmZsaWdodF9pZD0zMzU5OTk5ODgmYWRfaWQ9MzQ1OTE2NjY1JmNhbXBhaWduX2lkPTExNDc2ODA3MyJ9&amp;s=FTjUG1r79x9PvnGWeISpr8u0M0g" style="background-color:#5fa85d;width:fit-content;display:inline-flex;cursor:pointer;justify-content:center;align-items:center;transition:all 0.3s ease;border-width:0px;border-style:solid;border-color:#000000;border-top-left-radius:4px;border-top-right-radius:4px;border-bottom-right-radius:4px;border-bottom-left-radius:4px;--hover-background-color:#358832;--pressed-background-color:#0cbf06;padding-top:12px;padding-right:24px;padding-bottom:12px;padding-left:24px;margin-top:0px;margin-right:auto;margin-bottom:12px;margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06">
<p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">Get your free passive income stock pick</p>
</a></div>



<p class="has-text-color has-p-small-font-size" style="color:#767676">* Returns as of 2/20/25</p>



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</div><p><strong>More reading</strong></p><p><i>Hermione Taylor does not have a position in any of the shares mentioned. </i><em>The Motley Fool UK has recommended Morrisons and Ocado Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://staging.www.fool.co.uk/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>FTSE 100 bargains: the shares I’m looking to buy now</title>
                <link>https://staging.www.fool.co.uk/2021/09/16/ftse-100-bargains-the-shares-im-looking-to-buy-now/</link>
                                <pubDate>Thu, 16 Sep 2021 12:15:54 +0000</pubDate>
                <dc:creator><![CDATA[Hermione Taylor]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://staging.www.fool.co.uk/?p=242849</guid>
                                    <description><![CDATA[The FTSE 100 has mounted a strong post-Covid-19 recovery. Amongst these higher prices, I’m looking for bargain shares to buy now. ]]></description>
                                                                                            <content:encoded><![CDATA[<p>After falling to 5190.78 points as lockdown was announced, the FTSE 100 has seen a strong post-pandemic recovery, trading at 7047.59 points at the time of writing. Despite this improvement, it is still sitting below its pre-Covid-19 peak, and the recovery hasn’t been felt equally across all sectors: since 2020, <strong>Rightmove</strong> and <strong>Ocado</strong> have seen all-time share price highs, whilst <strong>Rolls-Royce</strong> saw a 15-year low. This leaves me wondering if there is still scope to grab a bargain share.</p>
<p>Looking for a FTSE 100 bargain share is a tricky business, and low price certainly isn’t enough of an indication of ‘good value’. Low prices can indicate that a firm is in (sometimes terminal) decline, and I’m always keen to look out for other indications of quality like sales, earnings, <a href="https://staging.www.fool.co.uk/investing-basics/understanding-company-accounts/the-cash-flow-statement/">cashflow</a>, debt and future prospects.</p>
<p>My first thought is that <strong>IAG</strong> (<a class="tickerized-link" href="https://staging.www.fool.co.uk/tickers/lse-iag/">LSE: IAG</a>) could represent a bargain FTSE 100 share. It was hit hard as flights were grounded and the share price has plummeted to 141.72p at the time of writing. But despite continued disruption to the aviation industry, IAG seems to be adapting: its losses are lower than at this point last year, and it has a strong cash position. As a primarily long-haul carrier, it should also benefit when EU-US routes resume. But there are considerable risks: the airline industry is very vulnerable to continued restrictions, and it is not clear whether consumer travel tastes will return to the old normal any time soon. But I am hopeful that IAG will weather the storm: the group is looking to start short-haul operations out of Gatwick, which should allow it to compete with short-haul airlines like <strong>Ryanair</strong>, who have seen a smoother recovery.</p>
<p>I think that the banking sector could also be a good source of FTSE 100 bargain shares, and I am keeping a keen eye on the <strong>Lloyds</strong> (<a class="tickerized-link" href="https://staging.www.fool.co.uk/tickers/lse-lloy/">LSE: LLOY</a>) share price. At 44.65p, it is still down 30% on its pre-pandemic high, and has the dubious honour of being the cheapest stock on the FTSE 100. But as all investors know, low price doesn’t mean good value and Morgan Stanley downgraded its price target for Lloyds last week. The banking sector had a difficult year, with the Bank of England placing restrictions on bank dividends and buybacks. However, these were lifted in June, providing a vote of confidence that UK bank capital positions are looking strong. I’m also encouraged to see that Lloyds has restored its (meagre!) dividend, and its <a href="https://staging.www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings</a> ratio is attractively low, at 6.81. Banks tend to be very pro-cyclical, so again, a share price recovery is going to hinge on the pandemic’s continued retreat. However, if we continue to see high demand for mortgages and loans as the economy recovers, I think that Lloyds could be well placed to benefit.</p>
<p>Overall, IAG and Lloyds look like they could be bargain FTSE 100 shares for me to buy now. But I will need to hold my nerve: they are both vulnerable to further Covid-19 restrictions and a weak post-pandemic recovery. I hope that fortune will favour the brave!</p>
<div style="background-color:#ffffff;width:100%;padding:20px 20px 20px 20px;margin:20px 0px 20px 0px;border-top:0px solid #dddddd;border-right:0px solid #dddddd;border-bottom:0px solid #dddddd;border-left:0px solid #dddddd;border-radius:0px;box-shadow:none" class="wp-block-custom-block-collection-presentational-card">
<h2 class="wp-block-heading" id="h-passive-income-stocks-our-picks">Passive income stocks: our picks</h2>



<p>Do you like the idea of dividend income?</p>



<p>The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?</p>



<p>If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…</p>



<p>Then we think you’ll want to see this report inside <em>Motley Fool Share Advisor</em> — ‘<strong>5 Essential Stocks For Passive Income Seekers</strong>’.</p>



<p>What’s more, today we’re giving away one of these stock picks, absolutely free!</p>



<div class="wp-block-custom-block-collection-cta-button"><a href="https://uk.foolpitches.com/r?e=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_c291cmNlPWl1a3NwcDc0MTAwMDAxMjQmYWRuYW1lPXVrX3NhX3Bhc3NpdmVpbmNvbWVfbm90aWNrZXIyNWVzc2VudGlhbHN0b2Nrc18yJnBsYWNlbWVudD1waXRjaCZjb252PSVjb252ZXJzaW9uaWQlJnJlZlVybD0vMjAyNS8wMy8wNS81LXVuZGVyLXRoZS1yYWRhci11ay1zaGFyZXMtdGhhdC1kZXNlcnZlLW1vcmUtYXR0ZW50aW9uLyZpbXByZXNzaW9uX2lkPWQ4Mzg4MTdiZDJjNDQxZjY4YjNmMTNmNzM1MjI2YWI5JmZsaWdodF9pZD0zMzU5OTk5ODgmYWRfaWQ9MzQ1OTE2NjY1JmNhbXBhaWduX2lkPTExNDc2ODA3MyJ9&amp;s=FTjUG1r79x9PvnGWeISpr8u0M0g" style="background-color:#5fa85d;width:fit-content;display:inline-flex;cursor:pointer;justify-content:center;align-items:center;transition:all 0.3s ease;border-width:0px;border-style:solid;border-color:#000000;border-top-left-radius:4px;border-top-right-radius:4px;border-bottom-right-radius:4px;border-bottom-left-radius:4px;--hover-background-color:#358832;--pressed-background-color:#0cbf06;padding-top:12px;padding-right:24px;padding-bottom:12px;padding-left:24px;margin-top:0px;margin-right:auto;margin-bottom:12px;margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06">
<p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">Get your free passive income stock pick</p>
</a></div>



<p class="has-text-color has-p-small-font-size" style="color:#767676">* Returns as of 2/20/25</p>



<style>
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</div><p><strong>More reading</strong></p><p><em>Hermione Taylor does not have a position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group, Ocado Group, and Rightmove. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://staging.www.fool.co.uk/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Will the dividend tax rise cause a stock market crash?</title>
                <link>https://staging.www.fool.co.uk/2021/09/15/will-the-dividend-tax-rise-cause-a-stock-market-crash/</link>
                                <pubDate>Wed, 15 Sep 2021 13:18:48 +0000</pubDate>
                <dc:creator><![CDATA[Hermione Taylor]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://staging.www.fool.co.uk/?p=242761</guid>
                                    <description><![CDATA[With the National Insurance hike hitting the news, I’m thinking about tax increases. Could next year’s dividend tax rise cause a stock market crash? ]]></description>
                                                                                            <content:encoded><![CDATA[<p>Since the National Insurance hike hit the news last week, tax increases have been at the forefront of my mind. But the tax rise I’ve been mulling over isn’t the NIC increase, it’s the dividend tax rise, which will be introduced from April next year. Under the new plans, investors will pay more on dividend income to the tune of an extra 1.25%. This increase will push basic rate dividend tax up to 8.75%, and is being levied to help support the NHS and social care. The big question for me is whether this tax hike could lead to sell-offs, or even a stock market crash sometime next year.</p>
<p>Dividends tend to reward longer-term investors who buy shares in companies that prioritise rewarding investors with regular payments. If the dividend tax rise starts to make this kind of investment look less desirable, which shares could be at risk of a sell-off? Potentially vulnerable are the so-called ‘<a href="https://staging.www.fool.co.uk/mywallethero/share-dealing/guides/what-is-a-dividend-aristocrat/">Dividend Aristocrats</a>’ like <strong>Diageo</strong> and <strong>DCC</strong> &#8211; companies that have raised their dividends annually for at least 25 years. One concern is that once dividend tax increases, these firms could start to lose their ‘USP’ as investors switch strategies and look to stocks that offer growth potential instead. But given that the ‘Dividend Aristocrats’ are so focused on meeting investor expectations, I think that they could actually prove more resilient: the dividend tax rise might persuade investors to switch away from lower-yielding UK stocks instead.</p>
<p>Another factor prompting my thoughts of a stock market crash are the low dividends paid out over the pandemic. 2020 saw two thirds of companies cut or cancel payments, leading to £14.5bn of <a href="https://www.ftadviser.com/investments/2020/10/21/uk-dividends-down-49-on-last-year/">lost dividends</a>. Could the double trouble of these low payments and higher dividend taxes cause investors to lose faith in investment stocks? If so, we could see a period of mass sell-offs and even a stock market crash as a we approach the new financial year.</p>
<p>But it is worth noting that dividend payments seem to have made a strong recovery so far this year, <a href="https://citywire.co.uk/wealth-manager/news/uk-dividends-surge-61-as-cash-rich-corporates-payout/a1545434">jumping by 61%</a> compared the same period in 2020. The dividend tax increase could also have the unexpected impact of encouraging more buybacks, which act as an alternative way for firms to give back to investors. Under share buybacks, companies repurchase shares, which typically pushes up share prices and offers investors the opportunity to sell their shares at a premium. If the dividend tax increase encourages firms to offer buybacks as an alternative to dividends, the risk of investors running for the hills could be lower.</p>
<p>Overall, I think the upcoming dividend tax rise looks unlikely to cause a stock market crash. The increase is relatively modest, and when the dividend tax-free allowance was cut by more than half in 2018, we didn’t see evidence of the market crashing. But I’m taking it as a sign that the government is looking for increasingly innovative ways to raise money, and that I need to look for increasingly innovative ways to invest!</p>
<div style="background-color:#ffffff;width:100%;padding:20px 20px 20px 20px;margin:20px 0px 20px 0px;border-top:0px solid #dddddd;border-right:0px solid #dddddd;border-bottom:0px solid #dddddd;border-left:0px solid #dddddd;border-radius:0px;box-shadow:none" class="wp-block-custom-block-collection-presentational-card">
<h2 class="wp-block-heading" id="h-passive-income-stocks-our-picks">Passive income stocks: our picks</h2>



<p>Do you like the idea of dividend income?</p>



<p>The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?</p>



<p>If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…</p>



<p>Then we think you’ll want to see this report inside <em>Motley Fool Share Advisor</em> — ‘<strong>5 Essential Stocks For Passive Income Seekers</strong>’.</p>



<p>What’s more, today we’re giving away one of these stock picks, absolutely free!</p>



<div class="wp-block-custom-block-collection-cta-button"><a href="https://uk.foolpitches.com/r?e=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_c291cmNlPWl1a3NwcDc0MTAwMDAxMjQmYWRuYW1lPXVrX3NhX3Bhc3NpdmVpbmNvbWVfbm90aWNrZXIyNWVzc2VudGlhbHN0b2Nrc18yJnBsYWNlbWVudD1waXRjaCZjb252PSVjb252ZXJzaW9uaWQlJnJlZlVybD0vMjAyNS8wMy8wNS81LXVuZGVyLXRoZS1yYWRhci11ay1zaGFyZXMtdGhhdC1kZXNlcnZlLW1vcmUtYXR0ZW50aW9uLyZpbXByZXNzaW9uX2lkPWQ4Mzg4MTdiZDJjNDQxZjY4YjNmMTNmNzM1MjI2YWI5JmZsaWdodF9pZD0zMzU5OTk5ODgmYWRfaWQ9MzQ1OTE2NjY1JmNhbXBhaWduX2lkPTExNDc2ODA3MyJ9&amp;s=FTjUG1r79x9PvnGWeISpr8u0M0g" style="background-color:#5fa85d;width:fit-content;display:inline-flex;cursor:pointer;justify-content:center;align-items:center;transition:all 0.3s ease;border-width:0px;border-style:solid;border-color:#000000;border-top-left-radius:4px;border-top-right-radius:4px;border-bottom-right-radius:4px;border-bottom-left-radius:4px;--hover-background-color:#358832;--pressed-background-color:#0cbf06;padding-top:12px;padding-right:24px;padding-bottom:12px;padding-left:24px;margin-top:0px;margin-right:auto;margin-bottom:12px;margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06">
<p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">Get your free passive income stock pick</p>
</a></div>



<p class="has-text-color has-p-small-font-size" style="color:#767676">* Returns as of 2/20/25</p>



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</div><p><strong>More reading</strong></p><p><em>Hermione Taylor does not have a position in any of the shares mentioned. The Motley Fool UK has recommended Diageo. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://staging.www.fool.co.uk/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Worried about another lockdown? 3 of the best shares to buy now</title>
                <link>https://staging.www.fool.co.uk/2021/09/14/worried-about-another-lockdown-3-of-the-best-shares-to-buy-now/</link>
                                <pubDate>Tue, 14 Sep 2021 10:32:50 +0000</pubDate>
                <dc:creator><![CDATA[Hermione Taylor]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://staging.www.fool.co.uk/?p=242442</guid>
                                    <description><![CDATA[Preparing for the worst, but hoping for the best… As the government considers winter restrictions, I’m thinking about the best shares to buy now.]]></description>
                                                                                            <content:encoded><![CDATA[<p>The government is set to announce plans for coping with a winter surge of Covid-19 later today. At the time of writing, it looks as though they are reluctant to return to any kind of shutdown and that booster jabs and work-from-home guidance will be the order of the day. But as we know from last Christmas, there is also the potential for an unwelcome surprise! So I have been mulling over my best shares to buy now as winter approaches.</p>
<p>My first thought is that <strong>Ocado</strong> (<a class="tickerized-link" href="https://staging.www.fool.co.uk/tickers/lse-ocdo/">LSE: OCDO</a>) may well continue the lockdown business boom that saw its share price rise from 1,1380p in March to 1,889p at the time of writing. And if cases rise over winter, I suspect that demand for online grocery deliveries will increase as people look to avoid face to face contact (and therefore an in-person supermarket shop). Group CEO Tim Steiner also said in February that he believes the pandemic has changed grocery shopping “for good”, leaving Ocado well placed. But though external conditions are favourable, it is worth cautioning that Ocado has its fair share of internal issues to contend with &#8211; including a fire in its warehouse and technical problems due to surging demand earlier in the year.</p>
<p>My second lockdown flashback is <strong>Domino’s Pizza Group </strong>(<a class="tickerized-link" href="https://staging.www.fool.co.uk/tickers/lse-dom/">LSE: DOM</a>) &#8211; a highlight of those dreary locked-down days. Domino’s also saw business flourish last year, with its share price increasing from 271.5p pre-lockdown to 407p today, and interim results showing strong profits and plans to expand franchise locations. And although a return to full lockdown is looking unlikely, I think that takeaways might still prove popular this winter. High case numbers in July saw face-to-face social contacts plummet as people undertook a voluntary ‘lockdown-lite’ &#8211; perhaps we will see the same response during a winter surge. However, from October, the chain will be hit with VAT increases as government support is rolled back, which will significantly increase its costs. But should hospitality struggle over winter because of restrictions or customer reluctance, Domino&#8217;s could prove one of the best shares for me to buy now.</p>
<p>My final idea relates to yet another favourite lockdown pursuit: this time…DIY. <strong>Howden Joinery</strong> (<a class="tickerized-link" href="https://staging.www.fool.co.uk/tickers/lse-hwdn/">LSE: HWDN</a>) has seen steady share price growth from 441p before lockdown to 963.9p today. After a tough start to 2020, recent half-year results show that revenues and profits are both up significantly on 2019 baseline levels. The press has also been full of stories of labour and materials shortages frustrating the country’s DIY mania. Will we see this enthusiasm for renovation continue over winter? If so, Howden Joinery could be one of the best shares to buy now. But again, there are some significant risks facing the building market: will these shortages actually lead to higher prices for Howden Joinery, and are customers going to finally exhaust pent-up DIY demand?</p>
<p>We will know more about the government’s winter policies soon. In the meantime, I will mull over the best shares to buy now: preparing for the worst, but very much hoping for the best!</p>
<div style="background-color:#ffffff;width:100%;padding:20px 20px 20px 20px;margin:20px 0px 20px 0px;border-top:0px solid #dddddd;border-right:0px solid #dddddd;border-bottom:0px solid #dddddd;border-left:0px solid #dddddd;border-radius:0px;box-shadow:none" class="wp-block-custom-block-collection-presentational-card">
<h2 class="wp-block-heading" id="h-passive-income-stocks-our-picks">Passive income stocks: our picks</h2>



<p>Do you like the idea of dividend income?</p>



<p>The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?</p>



<p>If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…</p>



<p>Then we think you’ll want to see this report inside <em>Motley Fool Share Advisor</em> — ‘<strong>5 Essential Stocks For Passive Income Seekers</strong>’.</p>



<p>What’s more, today we’re giving away one of these stock picks, absolutely free!</p>



<div class="wp-block-custom-block-collection-cta-button"><a href="https://uk.foolpitches.com/r?e=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_c291cmNlPWl1a3NwcDc0MTAwMDAxMjQmYWRuYW1lPXVrX3NhX3Bhc3NpdmVpbmNvbWVfbm90aWNrZXIyNWVzc2VudGlhbHN0b2Nrc18yJnBsYWNlbWVudD1waXRjaCZjb252PSVjb252ZXJzaW9uaWQlJnJlZlVybD0vMjAyNS8wMy8wNS81LXVuZGVyLXRoZS1yYWRhci11ay1zaGFyZXMtdGhhdC1kZXNlcnZlLW1vcmUtYXR0ZW50aW9uLyZpbXByZXNzaW9uX2lkPWQ4Mzg4MTdiZDJjNDQxZjY4YjNmMTNmNzM1MjI2YWI5JmZsaWdodF9pZD0zMzU5OTk5ODgmYWRfaWQ9MzQ1OTE2NjY1JmNhbXBhaWduX2lkPTExNDc2ODA3MyJ9&amp;s=FTjUG1r79x9PvnGWeISpr8u0M0g" style="background-color:#5fa85d;width:fit-content;display:inline-flex;cursor:pointer;justify-content:center;align-items:center;transition:all 0.3s ease;border-width:0px;border-style:solid;border-color:#000000;border-top-left-radius:4px;border-top-right-radius:4px;border-bottom-right-radius:4px;border-bottom-left-radius:4px;--hover-background-color:#358832;--pressed-background-color:#0cbf06;padding-top:12px;padding-right:24px;padding-bottom:12px;padding-left:24px;margin-top:0px;margin-right:auto;margin-bottom:12px;margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06">
<p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">Get your free passive income stock pick</p>
</a></div>



<p class="has-text-color has-p-small-font-size" style="color:#767676">* Returns as of 2/20/25</p>



<style>
.custom-cta-button p {
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</div><p><strong>More reading</strong></p><p><em>Hermione Taylor has no position in any of the shares mentioned. The Motley Fool UK has recommended Dominos Pizza, Howden Joinery Group, and Ocado Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://staging.www.fool.co.uk/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
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