Ep #232 - Don’t Let All Time Highs Scare You

Grow Money Business with Grant Bledsoe

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.

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