Guidebook for Simple Investments Part II

What Investors Must Do To Get it Right? 

1) There is a huge disconnect between markets and the economic reality. Global investors should look for opportunities to find a good investment relative to their currencyas there is a huge shortage of US dollars in the financial system and shortage is  likely to inflate further. 
2) The cost of money was cheap in the last 10 years mainly because of the Central Bankers QE window. Dollar denominated debt in emerging and developed economies has exploded in the last decade. This year has been different because of suspension of global trade and fall in demand. This is likely to persist  and has led to Investors risk appetite  reduction forcing them to look for safety and recession proof business. 
3) Investors must use an efficient way that meets their asset scale and channel  them into long-term planning as well as asset allocation. 
4) Investors should evaluate to ensure the cost of services provided by companies are not way too high in the next 5 years as reduction in variable and fixed cost will be in play immediately before pricing improves. Investors will have to sharpen their focus on operating fundamentals
5)  Investors will have to ensure the borrowing costs and tenure of the money at disposal are proportionate to the investment time horizon as most of the problems erupt not because of borrowing costs but from the redemption pressure during extraordinary events/circumstances.
6) Investors with a really long term horizon should also look at assets which may not produce results immediately but are yet viable as well as sustainable  in the longer duration. 
7) The geography of the investment should be the priority as US , Europe and Asia Pacific offer varied opportunities to Investors. 
8) Internet and Tech related assets are not cheap in any geographyInvestors need special skills and capabilities to figure out the winners herein from 2020 onwards
9)  Geopolitics, Climate and Fiscal Policy are going to play important roles in the next 2 - 3 years . Investors still don’t have many options beyond Tech and software business. Investors love the stable recurring revenue streams and the ability to rapidly scale businesses to serve a wide range of customers in multiple industries. At the same time, the fixed costs for SaaS companies are  lower than for traditional software firms.
10) Investors should align with top performers and not risk with potential losers. Winners will stand out doing things differently and have the ability to scale up the value and pricing. Losers may compromise too much in value and eventually will not be able to gain in pricing. 

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