Is it Wise to Buy Stocks at Historical Highs?

Tiger_comments
06-13

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?

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.

Report

Comment（30）

  • Top
  • Latest
  • icycrystal
    ·06-13
    TOP
    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~

    Reply
    Report
    Fold Replies
    • 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.

      06-13
      Reply
      Report
  • MHh
    ·06-14
    TOP
    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
    Reply
    Report
    Fold Replies
  • Aqa
    ·06-14
    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.
    Reply
    Report
    Fold Replies
  • Mrzorro
    ·06-14
    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.
    Reply
    Report
  • nomadic_m
    ·06-16
    "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.

    Reply
    Report
  • nomadic_m
    ·06-16
    *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?

    Reply
    Report
  • 中蓝的中榕
    ·06-15
    Investing in stocks at historic highs requires a balanced approach. While historical trends and potential gains offer compelling reasons to invest, the risk of corrections and valuation concerns warrant caution. By carefully assessing your risk tolerance, investment horizon, and conducting thorough research, you can make informed decisions that align with your financial goals. Remember, investing is a long-term game, and staying focused on your objectives can help you navigate market fluctuations with confidence.
    Reply
    Report
  • SR050321
    ·06-14
    For some company it is just matter of time it can break the previous highest stock price, but how long and how high ? Do you have the patience and holding power ? I always get in the middle only, i am not that high risk taker. If i see green i sell 😅😅😅
    Reply
    Report
  • WanEH
    ·06-13
    在牛市的话，高价买入应该没什么问题，因为后面还会创新高。不买入的话又只能眼睁睁看着它继续飞。但是也是要做好止损点，因为最怕自己是最后那批人。
    Reply
    Report
  • MasterStonker
    ·06-13
    The key word is pullback. Not when they are pumping for dear life. Get a grip on yourself and be patient. Greedy smart...not greedy stupid 🤣🤣🤣
    Reply
    Report
  • Bunifa Latif
    ·06-13
    No it is not wise as it is likely to fall after animal spirits! I will be patient and wait for the fall before entering!
    Reply
    Report
  • 4M65
    ·06-15
    It is never a good time to enter. whether historically high or low. Today is the best time to enter.
    Reply
    Report
  • Success88
    ·06-14
    I will wait for pull back then buy. Too high once fall will hit very hard. I cannot take this impact.
    Reply
    Report
  • hd87
    ·06-14
    no, I will buy during during the pullback to support level. yes, I will consider myself as a patient investor.
    Reply
    Report
  • Alubin
    ·06-14
    I usually DCA. you nv know when u are able to time accurately for historic highs or lows.
    Reply
    Report
  • SPOT_ON
    ·06-14
    never chase after a stock...

    I always go for historic.lows to buy

    Reply
    Report
  • highhand
    ·06-13
    best to get margin of safety. so try not to buy historical highs.
    Reply
    Report
  • Growmywealth
    ·06-13
    What are the chances of a pullback in this month?
    Reply
    Report
  • AS78
    ·06-16

    [Miser]  

    Reply
    Report
  • Sonsonkok
    ·06-15

    Great article, would you like to share it?

    Reply
    Report