** Investors are taking advantage of the real estate and stocks boom in the UAE.

Comment: The IPO generates an increase, but there are still ways, while real estate continues to generate income.

There are those who say that markets are able to predict the impact of war better than individuals, thanks to the "wisdom of the crowd". And the fact that markets are complex, adaptive second-order engines.

If that's the case, then the immediate reaction of the markets was largely indifferent to the events happening in the Middle East.

It's clear that it's still too early to say, but these are quite bold headlines.

And the increase in volatility generates a number of narratives, as short-term traders comment on immediate market movements and what they mean for investors as a whole. We also read about extreme events and what they signify for investors.

Given the high inflation, the story of the "rush for cash" is intensifying as a risk-off sentiment begins to prevail.

On the other pole, we have those who distinguish "groupthink" from "mob mentality"; the former consists of various opinions, while the latter is dominated by the herd.

Predictably, the values by which the companies and assets are assessed are lost between these two extremes. This is the critical variable that investors should always pay attention to.

Over the past 23 years, investments solely in the S&P 500 would have resulted in an annual return of 4.94 percent. With reinvested dividends, this would increase to 6.89 percent, meaning the portfolio's value would have grown by almost 40 percent.

Investing in a dividend aristocrats index would provide an additional annual return increase of 1.14 percent, highlighting the importance of dividends.

This was done in conditions where interest rates were close to zero.

Of course, dividends are not the only factor when choosing stocks; the main variable was valuation, and it is in the Western stock markets that zero interest rates have had the greatest impact on valuations.

With the fixed income market sharply re-evaluating the "term premium" and mortgage rates rising to new highs, it is natural that valuations will be compressed.

Even market experts like Jeremy Grantham say that no one in their right mind should invest in American markets at the moment due to their current level.

The dynamics of investors in the UAE have been significantly more attractive in the UAE and the Middle East.

As the new period of profitability begins, the arguments for generating exceptional returns in the future will only strengthen.

In recent years, this fact has been clearly demonstrated in the case of IPOs.

This does not mean that every stock is undervalued or that markets cannot become overvalued. The question lies in privatization, restructuring pension schemes, and the ability of companies to recognize the importance of cash flows (both in generating income and in making payments to investors), not only during periods of market difficulties or high inflation but also over the long term.

It has become widely recognized that in Dubai and the UAE, real estate is the preferred asset for most investors.

The increase in liquidity, as well as market coverage, has largely overshadowed corporate news.

One cannot deny the increase in activity that has occurred in the stock markets, and as the momentum builds, liquidity follows.

Just like the ecosystem around it with analytical reports and media coverage that go beyond the latest quarterly results.

Opportunities are coming. In the near future, moods will fluctuate depending on what is happening in the tense situation in the Middle East.

Market disruptions may occur as anxiety sets in. However, there hasn't been a single person who has been successful betting against Dubai and the UAE.

Skeptics in the real estate market existed only recently, only to be replaced by those who sided with the stock markets.

These are buying opportunities, and in the market environment, there are protective plays like DEWA, as well as opportunities like Aramex and Union Properties.

In the final analysis of valuations (whether it's stocks or real estate), there will always be an anchor that investors need to focus on.

Samir Lahani, Executive Director of Global Capital Partners.