Is it Wise to Buy Stocks at Historical Highs?

Tiger_comments
06-13
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Over the past year and a half, $S&P 500(.SPX)$ has risen nearly 50% from its low at the end of 2022.

However, the stock market cannot keep rising indefinitely; a pullback will occur sooner or later.

If you buy at historical highs and the market subsequently falls, your portfolio could suffer significant losses.

Although buying at high points seems risky, if you can hold firmly for the long term, this risk can be mitigated.

It depends on what type of investor you are. If you hold a stock or an index for the long term, it should be fine.

For example, $NVIDIA Corp(NVDA)$ previously rose to a high of $950, then pulled back to $760, consolidated for two months, and then broke through to $1,000.

Is buying at historical highs a wise choice?

Are you a patient investor who can wait till pullback?

Leave your comments and also post to win tiger coins~

Is it Wise to Buy Stocks at Historical Highs?
Over the past year and a half, the S&P 500 has been rising, currently up nearly 50% from its low at the end of 2022. If you buy at historical highs and the market subsequently falls, your portfolio could suffer significant losses. Although buying at high points seems risky, if you can hold on firmly for the long term, this risk can be mitigated. ------------ Is it really wise to buy at historical highs? Have your bought at historical highs? Did you profit or lose moner?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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Comments

  • icycrystal
    06-13
    icycrystal
    I would prefer to buy historical low than historical high [Grin] [Grin] [Grin]

    patience is a virtue that is cultivated especially when it comes to trading...

    at times, I found myself itching to buy where I should wait it out.. and that could be risky because it could affect portfolio...

    am still working on it... patient, patience... noun verb or whatever... [Happy] [Happy] [ [Happy]

    @rL @Shyon @HelenJanet @GoodLife99 @Universe宇宙 @LMSunshine @koolgal @Aqa @TigerGPT

    Is buying at historical highs a wise choice?

    Are you a patient investor who can wait till pullback?

    Leave your comments and also post to win tiger coins~

    • TigerGPT: 

      As an AI financial analyst, I can provide you with some insights on buying at historical highs.

      Buying at historical highs can be a risky strategy as it often means that the stock has already experienced a significant price increase. There is a possibility that the stock may experience a pullback or correction after reaching a historical high.

      However, it is important to note that buying at historical highs does not necessarily mean that it is a bad investment. Stocks can continue to rise even after reaching new highs, especially if there are strong fundamental factors supporting the company's growth. It is crucial to consider the company's financial health, growth prospects, and market conditions before making an investment decision.

      As for being a patient investor, it is generally advisable to have a long-term investment horizon and not be swayed by short-term market fluctuations. Patience allows investors to ride out market volatility and potentially benefit from the long-term growth of their investments.

      Remember, investing in the stock market involves risks, and it is always recommended to conduct thorough research and seek professional advice before making any investment decisions.

      Please note that the information provided is for reference purposes only and does not constitute investment advice. Investing in the stock market involves risks, and you should carefully consider your investment objectives and risk tolerance before making any investment decisions.

  • MHh
    06-14
    MHh
    Buying at historical high is just too high risk. I would prefer to wait for a pullback. Being able to hold on for the longer term May of necessarily mitigate the risk of market conditions change or there are better competitors
  • Aqa
    06-14
    Aqa
    It is dangerous to buy stocks at their historical highs. Stock price cannot keep rising indefinitely; a pullback will occur sooner or later. Buying stocks at their historical highs and when the market subsequently falls, means suffering significant losses.Only growth stocks for long term holding can justify buying at high points.
  • Mrzorro
    06-14
    Mrzorro
    Buying at historical highs is definitely not a wise choice! I had so many worst experiences like this when I was a beginner. The stock now even delist [LOL] [Facepalm] better wait for the low ( which you think is) to enter.
  • nomadic_m
    06-16
    nomadic_m
    "Should you buy at historical highs?*

    The answer isn't simple. Consider the opportunity cost: if you don't invest your weekly auto deposit, it's like saving gold coins without earning interest. Unlike some other apps, NZ users lack access to high-yield intermediary funds. Therefore, investing in stocks, even at historical highs, might be a better long-term strategy.

  • nomadic_m
    06-16
    nomadic_m
    *Is buying at historical highs a wise choice?*
    The answer isn't straightforward, but as a $Tiger Brokers(TIGR)$ NZ app user, it's essential to consider the opportunity cost. If I don't invest my weekly auto deposit, it's like saving gold coins in a piggy bank without earning interest. Unlike Sharesies app, Tiger brokers NZ users don't have access to high-yield intermediary funds. Therefore, investing in stocks, even at historical highs, may be a better strategy in the long run sometimes. The question is which stock?

    @TigerGPT when will nz tiger brokers user have access to the high-yield intermediary fund like Sharesies?

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