The Avoidable Mistake Investors Make When the Stock Market Hits All-time Highs
Don’t be clever, be consistent
Here’s something I overheard from two parents talking about investing in the cafe of the science center last week:
“The stock market looks too high. I’m going to wait until the next crash before investing any more money.”
Yes, I edited that sentence to be clearer for the purpose of this article, but that was the sentiment they were expressing: stocks look too high, and therefore, they should be crashing soon.
At the time I overheard that conversation, the S&P 500 was only 8% below its all-time high.
I am not the kind of person who injects themselves into conversations that I overhear, but it did inspire me to write today’s post, which is why investing when stocks look expensive is not as dangerous as many people assume it is.
The stock market is constantly setting new records — that’s how it’s supposed to be
What do you think is more likely in a year when the S&P 500 reaches an all-time high?
Option 1: a market crash takes place later in the year?
