Macro Minute: Week of February 12, 2024
You might have heard: equity markets are currently at all-time highs as of the start of 2024. Many people fear investing when markets are at peaks, which seems counterintuitive to the “buy low, sell high” mantra. However, let’s examine history to understand how this investment strategy has fared.
Meb Faber wrote about a strategy of buying all-time highs versus buy and hold strategies.
He stated, “I don’t think the takeaway is really that this is a system anyone would want to implement, but rather, an acknowledgement that all-time highs are nothing to be afraid of.”
Another analysis about this topic I recently read was by Fidelity’s Jurrien Timmer. He looked at what the market has done in the periods of all-time highs following a bear market.
I hope this research gives you confidence to continue your plan. If you are saving and investing for the future, don’t let the current markets being at all-time highs deter you. We don’t know how things are going to turn out – no one does – but we can make the next right choice.
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