There are always opportunities

When we look at investment opportunities at any given time, we have to stay flexible. If you take the property market as an example, you will find that trying to sell a property at the moment is difficult but renting it out is much easier. We all have our preferences when it comes to investments, and many of these preferences are the result of past experience. If you had made a good property investment in the past, you would probably prefer that as an asset class going forward. The same can be said for equities. Perhaps you once bought a share in a company and sold it a year later for a handsome profit. These preferences can also stem from negative experiences. If you decided to start investing in international equities at the end of 2021, you would probably hate shares now because share prices dropped so much in 2022.

It is, however, wrong to stick to such a firm opinion about any single asset class, owing to the fact that asset classes are dynamic and impacted by so many fundamental as well as sentimental factors. If we look at the valuations of equities in the USA at the moment, you will see that certain sectors are expensive and others are fair value:

The FANG+ shares have had a spectacular bounce since the beginning of the year, making them a bit pricey now; but the S&P500 excluding the FANG shares is still good value for money.

Investment opportunities are not limited to specific asset classes, the choice is much wider than that. You have to consider different geographical regions, countries, industries and, of course, political interference. Staying on top of the game and being able to identify the best investment opportunities cannot be done as a hobby. Like anything else in life that you want to excel in, you have to gain experience; practise; stay focused; and learn from your mistakes. The building blocks of being a successful investor is the ability to identify something that is unique and has scale. If you can buy into something like that and have patience, you will be rewarded in the end.

As investors we have to believe that, when one door closes, another one opens. We can all attest to the fact that many doors are closing at the moment, but this is not something new. History has proven that we can open new doors of opportunity and in most cases these new opportunities provide us with an even better situation than before.

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