Understanding All-Time Highs: A Perspective on Market Growth
Investing during all-time market highs can feel intimidating. It’s natural to wonder if you’re buying at a peak before the market takes a downturn. However, history shows that investing at all-time highs has offered similar or better returns compared to investing on random days throughout the market cycle, as shown in the illustration below. Instead of worrying about timing the market, consider focusing on time in the market.
Key Takeaways to Consider
- All-time highs can occur in strong, long-term bull markets.
- Investing at all-time highs has yielded strong returns relative to investing arbitrarily across time.
- Rather than timing market fluctuations, prioritize staying invested for the long haul.
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