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Will we have a new stock market crash in 2024? Willpower FTSE 250 Do stocks take the brunt of any new stock and punish investors again?
Well, it could happen, but I really doubt it. Not in a year when UK share profits and dividends look set to rise.
And in recent months, the mid-cap index has begun to outperform the FTSE 100 again. This has been done many times in the past, when the stock market mood turns bullish.
Mid-cap deals
I try to avoid judging a stock based on its index, as it really all depends on individual valuations.
But if we achieve a good trading year in 2024 which could be just around the corner, I see some FTSE 250 stocks that I think could do well. Here are a few on my potential purchase list.
TO Khaki Recharging is definitely a possibility. I am optimistic about the home building business in the long term. Is there anyone who is not? Cresta Nicholson Holdings It's another one that I like.
The sector could remain in the dumps for a while yet, and we could see more pressure on dividends. But when a cyclical sector is down, it's a good time to buy, right?
Financial purchases
Like their FTSE 100 peers, I also rate some of the smaller financial stocks as good value.
In particular, I like the look of Ashmore Group and open. We expect an expected dividend yield of 8% and 7.9% respectively. That's for 2023, and so close to the end of the year, I'd say there should be reasonable confidence in them.
Forecasts for the coming years show constant dividends.
However, not all the big dividend stocks in the FTSE 250 fill me with joy.
20% dividend!
Look at the biggest one, for example. is oil stock Diversified Energy Company, and some forecasts show a dividend yield of 21%. With the company's expansion policy and the costs that entails, I do not see it as sustainable.
Some analysts have already reduced their forecasts to almost zero. Oh, and there has also been a lot of dilution through new share issues. It's not for me.
Port energy Although it could be. I can see volatility due to uncertainty over oil prices and demands. But he's one of those rare oily guys with net cash. And there's an 8.2% dividend at stake. I'm tempted.
Investment trusts
If we enter a bull market but can't decide which stocks to buy, I think investment trusts can be a good option.
Target Healthcare REIT It's on my list. It might be valued based on its properties, but its true value must surely depend on the long-term demand for its nursing homes.
Supermarket Income REIT It's also tempting, with a forecast dividend yield of around 7%. There is definitely some property-related risk with these two, please be aware.
Still, if I had enough cash, I think I'd invest some in most of these. As it is, they are on my list for further analysis.
