Posted on 11/19/2019 6:29:43 PM PST by MtnClimber
Nobody wants to be the schmuck who bought stocks at the tippy-top.
Did you check your 401(k) this week? If so, you surely noticed US stocks hit new all-time highs. And the S&P 500 is now on track for its best year since 1996.
How does this make you feel in your gut? Are you happy stocks are achieving new highs? Or does it scare you... tempt you to sell all your stocks… and run for cover?
Record High Prices Scare Investors
I talk with hundreds of investors... and I can tell you with 100% certainty record high stock prices scare most folks.
A financial advisor told me the other day: “Every client buying stocks right now is terrified. And those already in the market are nervous this is the top.”
I understand the feeling. Owning stocks at all-time highs can feel like standing at the top of a skyscraper and looking over the edge. After all... stock prices are higher than they’ve ever been. That can only mean danger. Right?
What if I told you record highs are nothing to fear? In fact, they’re cause for celebration.
You see when stocks hit all-time highs, more all-time highs are likely right around the corner. Since 1915 the Dow Jones Industrial Average has made over 1,350 new all-time highs. That works out at roughly 13 new highs a year.
According to 104 years of data, stocks climb an average of 7.8% in the year after they achieve new all-time highs. Even better, five years later, stocks rise another 32%, on average.
(Excerpt) Read more at riskhedge.com ...
I don’t know. If Elizabeth Warren is the RAT nominee I would expect it to hurt stock prices. If she were to get elected I would expect a HUGE selloff and a market crash. Be careful!
Consult your financial advisor. Mine has planned for most every scenario.
“Buy high.”
They’ll send a limo.
If President Trump wins re-election next year, I will definitely be upping my 401k contribution. If, God forbid, a democrat wins, I’ll be cutting my contribution down to 6%.
I personally prefer the crap table. The chance of winning are ALMOST one in three.
My husband and I enjoy researching and buying our own stocks through Vanguard. We are retired and have nothing better to do and it is fun. For instance, we just bought more MDCO today after it going up over $20+ to $70 in the last two days alone! Better jump in.....analysts say it’s going much higher!
Our return for the year is 33%+ so far on all our stocks!
The Late Phase is the third and last phase of the recovery/growth cycle and is followed by the recession phase. The paper cites that sometimes phases can be retraced or even skipped, but the four phase cycle is the norm. Clearly it is time to be careful.
The trend is your friend, until it’s not.
The turkey loves the trend until Thanksgiving.
So which plan are you following and which plans are you not?
ROTFLMAO at a stupid post!
My return so far this year is about the same as yours. That increase is about 6X my highest salary when I retired about 18 months ago.
Congratulations! I have a broker/investor who is not doing as well.
Are you thinking of Roulette? The house edge for Craps on a Pass Line bet are 1.41% and 1.36% on the Don’t Pass. If you lay the odds bet after the point the house edge is 0%.
I agree, I worked in the stock market almost 40 years as an equities trader.
Sadly, some people chase penny stocks. A worthless endeavor in every respect.
I put half a mil in the s&p500 and another half a mil in bonds/treasury bills. Automatic pilot.
I’m diversified in Fidelity and Vanguard. I lose less than the market when it falls and make less when it rises but I make enough to withdraw 4 percent annually for retirement.
My AMD stock went up about $10 this past month.
Today’s price $41.29
I almost sold when as it was meandering around $28 to $34 for much of the year. The trade war is dying down or more predictable for Wall Street. AMD is gaining market share.
Well, my stock account has almost doubled in the past 4 years, so there is that. And that does not include dividends received.
There is a more than just a little cherry-picking in that statement.
In late 2018 the S&P dropped almost 20%, hitting a low on December 24.
A lot of the "best year" is just a recovery from that drop.
OTOH, the market is doing quite well and I am happy.
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