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The stakes are high for the stock market as the recent US tech sell-off begins to hint at a potential crash heading our way.
The situation is becoming increasingly tense in the run-up to SpaceX’s initial public offering on Friday (June 12). This is hardly surprising, considering that this is the greatest result in history. This also applies to Elon Musk, who is always in the headlines. And who may soon write modern ones, becoming the world’s first trillionaire.
If investors support SpaceX, its valuation could exceed the $2 trillion mark. Or it may explode at the entrance. No wonder investors are becoming more and more anxious. They also worry about artificial intelligence. Will hyperscalers get a return on the hundreds of billions they are pumping into data centers?
What should investors do now?
So what is modest FTSE100-what is an informed investor supposed to do with all this? No matter how it plays out, we too will be drawn into events.
First, we must keep our feet firmly on the ground. On Twelfth Magpiewe buy shares for in the long run. We don’t advise guessing markets because no one can tell what they will do next. Selling before a potential crash is stupid. Most never happen.
But we like to buy stocks After drop or failure. This allows us to buy our favorite FTSE 100 shares at a lower valuation and achieve a higher rate of return. We then sit back, rest and allow time for the share price to recover and for the dividends to be reinvested connect and grow.
Is NatWest stock tempting today?
One stock I’m really enjoying right now is NatWest Group (LSE: NWG). In fact, I like it so much that I bought it last month. And now I’m tempted to buy more.
NatWest shares will never fly to the stars. There is no ambition to build a space station or establish extraplanetary life on Mars. It mainly deals in offering everyday banking services to consumers and tiny businesses in the UK. And that suits me.
Given its modest ambitions, NatWest shares are doing quite well. They have increased by 188% in the last five years. If dividends are reinvested, the total return will be closer to 215%. This would turn £10,000 into £31,500. Not bad.
Despite such a good run, they remain surprisingly inexpensive with a low price-to-earnings ratio of 8.8. Looking at this, you might think the stock is struggling rather than flying. The same applies to dividends. That’s an impressive 5.35%. Moreover, the stock is forecast to grow to 6% this year and 6.7% in 2027. Just remember that dividends are not guaranteed.
Bank stocks are connected to the economy and if Britain’s troubles escalate, NatWest could strike. Demand for mortgage loans may decline and bad debts may enhance. Its shares will also suffer if there is a US tech crash, along with much of the market. However, I support the bank to continually build wealth over the years and I think it is worth considering. I’d rather buy this today than take the plunge on SpaceX.
Is it worth investing £5,000 in NatWest Group Plc now?
If investing expert Mark Rogers and his team have stock advice, it can pay to listen. After all, Twelfth Magpie’s flagship Share Advisor newsletter, which it has run for almost a decade, provides thousands of paying members with the best share recommendations from across the UK and US markets.
Mark believes there are 6 standout stocks that investors should consider buying right now. Want to see if NatWest Group Plc is on the list?
Harvey Jones owns shares in NatWest.
