Investing at Highs: A Kiwi Perspective
Is buying at historical highs a wise choice?
Investing at all-time highs can seem daunting, but historical data supports it as a viable strategy. From 1988 to 2024, buying the S&P 500 at peaks often yielded better returns over one-, three-, and five-year periods compared to other times [oai_citation:1,Investing with the Market at All-Time Highs | Wealth Management](https://www.wealthmanagement.com/equities/investing-market-all-time-highs) [oai_citation:2,The Smart Money Is Buying All-Time Highs - And Why You Should Too | Nasdaq](https://www.nasdaq.com/articles/the-smart-money-is-buying-all-time-highs-and-why-you-should-too). Market highs indicate strength and momentum, suggesting further gains [oai_citation:3,Don't Fear All-Time Highs, Understand Them - RIA](https://realinvestmentadvice.com/dont-fear-all-time-highs-understand-them/).
Are you a patient investor who can wait till pullback?
Patience is key for cautious investors. Waiting for pullbacks allows buying at lower prices and aligns with risk-averse strategies like dollar-cost averaging [oai_citation:4,Beneath the Surface of Market Highs | Charles Schwab](https://www.schwab.com/learn/story/beneath-surface-market-highs). Staying informed and ready to act during market fluctuations is essential.
For more details, check out the resources on [Wealth Management](https://www.wealthmanagement.com) and [Nasdaq](https://www.nasdaq.com).
Comments