Investment Strategies: How to Identify Winning Opportunities?
Choosing the Ideal Investment
Many investors are influenced by social media influencers, who often share videos boasting about profits from ventures like dropshipping or Bitcoin.
However, these influencers frequently have not earned anything more than high viewership for their videos. They typically learn about these investment types only after they have become mainstream and entry prices have surged, leaving the real opportunity behind. Consequently, the financially uneducated majority end up chasing these remnants and incur losses instead of profits.
Global Stock Market Prior to 2008
Before 2008, the global stock market flourished, with promoters claiming that stocks were a straightforward path to wealth, requiring no prior experience.
This led to a rush into the stock market. However, the market collapsed in 2008. While many so-called analysts advised selling due to the market crash—a reactionary move rather than an analytical one—the true minority of analysts and investors advised holding or buying stocks, as prices were then below their real value, presenting a genuine opportunity for seasoned investors.
Despite this, the majority chose to sell and settle for their losses, while the insightful minority bolstered their investments. After a relatively short period, the markets regained strength, reaching new highs and yielding substantial profits for these professional investors.
Bitcoin and Cryptocurrencies: History Repeats Itself
A similar scenario unfolded with Bitcoin. Initially ignored by proclaimed experts until its value soared from mere cents to tens of thousands of dollars, it was then that they told everyone that wealth was only possible through purchasing Bitcoin. However, they failed to mention that such an opportunity would not recur.
The price of Bitcoin plummeted from $68,000 in 2021 to $16,000 in 2023. The same analysts made the repeated mistake of advising to sell during the crash, and then to buy when Bitcoin rebounded to $70,000 in 2024, urging people not to miss out.
Lessons Learned
The lesson to be learned here is that making investment decisions based on advice from unqualified individuals can lead to undesirable outcomes. These people may encourage you to buy when everyone else is buying, rather than informing you that it is the best time to sell and secure profits before the market trend reverses.
It's crucial to educate oneself, learn how investments truly function, and follow credible individuals who have a track record of predicting opportunities before they become media sensations.
The Opportunity in Real Estate!
As an expert in international real estate since 2016, I can affirm that the dynamics in real estate markets are similar to those in stocks and cryptocurrencies, though with less volatility. If you follow the crowd into markets that are currently yielding high returns, you are likely facing a high risk of loss, or at the very least, not achieving the profits your capital deserves. This is because the prior profits have already driven up prices, and the cycle may be nearing a reversal.
Instead, consider markets with real potential for growth but are temporarily suffering, such as the Turkish real estate market. Despite high interest rates following a devastating earthquake affecting ten Turkish states and substantial reconstruction costs borne by the state treasury, the Turkish real estate market is poised for recovery. Within two to three years, it is expected to yield significant profits for investors who seek genuine opportunities.
As you can see, selecting investments requires deep learning and understanding of market mechanisms, avoiding general hype and inaccurate information.
Since real estate investments are long-term, proper planning and wise decision-making can lead to positive and sustainable financial outcomes.
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Buying Property in Turkey! Is This the Right Time or a Risky Investment to Avoid?
The real estate market in Turkey is currently facing numerous challenges, starting with an economy impacted by a massive earthquake that hit the country last year, alongside high inflation. This has led to interest rates being raised to a record high of 50%, resulting in a near-total halt of the real estate sector. Additionally, recent legal changes, such as raising the minimum investment for Turkish citizenship to $400,000 and for real estate residency to $200,000, have caused a decline in the number of foreign investors.
To answer the question: is now the right time to buy property in Turkey, or not? We need to analyse two aspects: the internal Turkish situation and the regional and global outlook.
Groundbreaking Reforms to Simplify Lease Procedures in Turkey
The Turkish Ministry of Treasury and Finance has announced its readiness to introduce a new law requiring rental contracts to be signed electronically through the e-Government portal, "e-Devlet." This initiative aims to simplify and expedite the rental process between property owners and tenants, with implementation expected in the near future. Licensed real estate agents will also be able to use this system by the end of the year.
The electronic lease contract system will be introduced in two phases: in the first phase, property owners and tenants will be able to complete rental agreements directly through the "e-Devlet" portal, where the owner creates the contract, and the tenant approves it electronically. The second phase will enable licensed real estate agents to prepare contracts and send them to both the owner and tenant for approval through the portal.
Minister of Treasury and Finance, Mehmet Şimşek, stated that these reforms represent "fundamental changes aimed at reducing bureaucracy, saving citizens time and effort, and facilitating access to property valuation information across Turkey."
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