Deciding the Best Global Investment Opportunities for Your Dry Powder: Insights from Sam Burns

by | Aug 6, 2023 | Invest During Inflation | 6 comments




It’s a crucial week for markets as the ECB, BOJ, and the Fed all face rate decisions.

Sam Burns, chief strategist at Mill Street Research, joins Maggie Lake to discuss the significance of the lineup of central bank rate decisions this week and analyze some recent economic data out of China. Plus, Sam will share which parts of the world he believes are ripe for investment.

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Where in the World to Put Your Dry Powder (with Sam Burns)

For investors and traders, having “dry powder” is crucial. This term refers to the cash reserve that investors keep aside to take advantage of potential investment opportunities whenever they arise. Dry powder can be the difference between making a profitable investment or missing out on an excellent opportunity.

So, where should you put your dry powder in today’s world? To find out, we’re joined by Sam Burns, a seasoned investor with years of experience navigating the volatile markets.

Stock Market: While the stock market might seem like an obvious choice, Sam advises caution. He emphasizes that the current bull market has been going on for a long time, and valuations are reaching all-time highs. Instead of jumping into the stock market blindly, Sam suggests looking for undervalued sectors or companies that have strong growth prospects.

Real Estate: Real estate has historically been a safe and lucrative investment option. With interest rates remaining low and the demand for housing remaining high, real estate can be an attractive option for deploying dry powder. Sam urges investors to research local markets thoroughly and look for areas with potential growth. Additionally, he recommends considering real estate investment trusts (REITs) as a way to diversify and gain exposure to different sectors within the industry.

Private Equity: Private equity investments can be highly rewarding if done right. Sam recommends focusing on sectors that have a bright future, such as technology, renewable energy, or healthcare. However, he also warns about the illiquidity associated with private equity. Investors should be willing to lock up their capital for an extended period before expecting any returns.

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Emerging Markets: Another suggestion from Sam is to consider investing in emerging markets. He explains that these economies often have higher growth rates compared to developed nations, which can lead to high investment returns. However, Sam advises not putting all your dry powder into one emerging market since they can be more volatile and pose higher risks. Diversification across different regions is essential.

Cryptocurrencies: The rise of cryptocurrencies has caught the attention of many investors. Sam acknowledges the potential for high returns in this space but warns about the volatility and unpredictable nature of cryptocurrencies. He emphasizes the importance of doing thorough research and investing only what one can afford to lose.

In conclusion, the decision of where to put your dry powder ultimately depends on your risk appetite and investment goals. Sam stresses the importance of conducting thorough research and understanding the risks associated with each asset class. Whether it’s the stock market, real estate, private equity, emerging markets, or cryptocurrencies, diversification and a long-term perspective are key to successful investing. So, analyze the opportunities, assess your risk tolerance, and make informed investment decisions to make the most of your dry powder.

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6 Comments

  1. Eva Savona

    Love the wise interviewer & honest advice of guest. Music intro & ending is so abrasively horrible I must mute the decibels!

  2. Alex Morgan

    A lot of these prices are geopolitical. Europe relied too heavily on Russian gas, the US raising rates hurts everyone who owes dollars but uses other currency. This is a deliberate attempt to maintain global hegemony. We will continue to see low growth and inflation in Europe for a while.

  3. Jim Bob

    Is this guy for real, the European economy is tanking in front of our eyes, the markets are clearly in a euphoric mania, which has been witnesses time after time proceeding a recession,

  4. o4pureh2o

    He lost me a Russians cutting off the gas

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