Many commentators concentrate on the investment moment, but investors should always put the current economic conditions and financial market data into an historical context. In this video, we discuss three distinctive components of an investment strategy: investment environment, share market strategy and stock selection. In the first section we determine whether the overall environment is favourable or unfavourable for share market performance. Next we determine whether the share market is undervalued, fairly valued or overvalued. Finally, this enables us to make decisions on which stocks we prefer.