Posted 4/15/2024, 9:12:00 AM
S&P 500 Near Record Highs - History Shows Investing at Peaks Can Lead to Gains, But Caution Still Warranted
- The S&P 500 is near record highs, but history shows investing at peaks often leads to further gains
- Mistake #1 is avoiding stocks or selling solely because of high valuations; markets can keep rising from all-time highs
- Mistake #2 is chasing momentum without considering fundamentals and valuations (i.e. falling prey to FOMO)
- Current valuations are elevated compared to historical averages, so caution is warranted
- Focus on valuation and long-term holding, not short-term predictions, when buying quality stocks