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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.

DISCLOSURES:

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Longview Financial Advisors, Inc.), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Longview Financial Advisors, Inc. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Longview Financial Advisors, Inc. is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of the Longview Financial Advisors, Inc.’s current written disclosure statement discussing our advisory services and fees is available upon request.