The investment universe always creates a setting to invest in a particular asset class. COVID was a setting that enabled an equity wave. A wave usually builds up, rises and eventually descends. As the big primary wave descends in one asset class, a secondary wave takes wing. But secondary and tertiary waves are always weaker and eventually settles down into a flat move.
The equity investors who came into the market post COVID don’t seem to realise that equity expectations from here will need to factor in longer gestation. But, when one asset class loses sheen, others begin to shine. It’s that time when Investors need to create a more balanced asset approach.
Giving space to other asset classes must be prioritised now. Debt is almost certain to have a primary wave rising from here. The opportunity before every Investor is to ride that wave. But, investing in debt is far more sophisticated than equity investing and most investors hardly realise that. It seeks a sharp following of economic trends, deep understanding of macros and astute sense of where the data is moving. Investors must cut this learning curve short in whatever way possible and board the debt investing wave before it rises.
Waiting for the perfect moment will make you miss that train. Board it when it is still at the station.
