The general goal of investing is to buy low and sell high sometime in the future. So how should we handle it when the markets make new all-time highs? Should we wait for the market to fall before investing new money? Should we invest it all now to catch upward momentum?

The reality is that markets make new all-time highs pretty frequently. Since our economy continues to grow, the size of the pie that drives corporate profits and stock returns simply tends to get bigger and bigger. And even if you invest at a new all-time high today, you’re still likely positioned for positive long-term returns.

In today’s episode we dive into the details. We cover the history of returns over 1, 3, and 5 year periods after investing at an all-time high, and how you might think about this in the context of your overall strategy.

 

Show Notes

[04.03] All-time highs – Grant explains why you shouldn’t be deterred from investing due to markets hitting an all-time high.

[08.32] S&P 500 – Grant explains why the 500 companies that comprise the S&P 500 continue to reach all-time highs.

[13.40] Stock market – Grant discusses the reason why the stock market continues to go up.

[19.31] Values – Grant explains why nobody can be confident about the exact state of the values at any date in the future.

[27.27] Buy low and sell high – Grant shares how to mitigate professional investors or hedge funds taking advantage of your trades.

 

 

Resources

3 Golden Rules On How To Invest At All-Time Highs

seekingalpha.com/article/4453541-3-golden-rules-on-how-to-invest-at-all-time-highs