Over the last year, I’ve built a growing list of stocks whose prices have managed to defy gravity despite my skepticism about their valuations. Many of these are growth stocks that I find attractive as businesses but whose stock prices are too high for me to comfortably invest in right now.
If you have a similar list, I implore you, don’t hesitate when a stock hits your buy price. It’s impossible to know if the decline was just a correction or a full-on bubble popping until well after the price bottoms. Trust your research and put your cash to work.
3. Researching and investing in alternative opportunities
There are a lot of ways to invest your money. A few areas of growing interest for me are real estate and cryptocurrency.
The real estate market has seen prices climb right alongside the stock market, but mortgage interest rates are still near historic lows. As a result, real estate investing may require a larger cash outlay for a down payment, but you can still get a good return on that cash. Buying a rental property can be an opportunity to add leverage to your investments and produce steady cash flow. Real estate can also provide good diversification from stock returns, although it has seen increased price correlation with the stock market over the last few years.
The cryptocurrency market has also seen a huge run-up in prices, but the more research I do on opportunities in DeFi and blockchain applications, the more I think cryptocurrency will grow in importance to the global economy. After the recent pullback in crypto prices, I put some more of my cash into crypto. Cryptocurrency prices are also historically uncorrelated with U.S. stock prices, so buying tokens could be a good way to diversify your portfolio.
Originally Appeared Here