What do you do when valuation runs up in one asset class? Most investors end up getting upset that they didn’t invest enough in that asset class and feel left out. It is like landing at a train station and seeing the train depart from the platform. You still must find a way to reach your desired destination.
In investing, if you missed out on an opportunity in one asset class, you need to park yourself in some other asset class for a while and then hope to get back into what you missed. Clearly, the game is all about patience. When equity valuations run up very fast as seen in the last couple of months, this patience gets tested.
There is no escaping this test. An investor needs to accept that he may have missed out on some opportunities, look for newer opportunities, park money in alternate asset classes like debt and wait to buy at the right valuations. If an investor finds options at the right valuation, then he must go for it. This is a market where one needs to be very specific in every investment idea.