I've been a happy member of the E&P investment community for many years now, mostly based on my views on macro economic issues. However now, based on Keynes famous quotation "when the facts change, I change my opinion........" I am beginning to think about alternatives. In my particular case, the facts that I think are changing are:
- As I get older I am ever more interested in income (however I'm perfectly happy to take income from capital gains)
- As I get older I am less inclined to risk
- As a baby boomer I'm conscious of the effect of fellow boomers driving up asset prices over time (including stock markets) - and the looming possibility of the reverse happening as we all enter retirement.
- As western markets and western style capitalism give way to eastern competition, their focus may be more on productive capacity and wealth distribution rather than asset inflation.
- Did I mention I am less inclined to risk?
Given all this - and more - I am wondering where I should begin to look for investment opportunities. My initial thoughts point towards income stocks - large, stable companies, operating in global markets, generating solid income which they will be happy to share with me. This is not exciting I know - but probably safer than most - and yes I know all about Lloyds Banking Group (LON:LLOY) and BP (LON:BP). This on the basis that stock markets will continue to exist but in order to attract investment companies will have an increasing need to deliver dividends.
Not much more than musings at the moment - there's plenty more left in the E&P sector IMHO - but one must look to the future. I'd be most interested in other's opinions