Posted on 11/19/2019 6:29:43 PM PST by MtnClimber
Nobody wants to be the schmuck who bought stocks at the tippy-top.
Did you check your 401(k) this week? If so, you surely noticed US stocks hit new all-time highs. And the S&P 500 is now on track for its best year since 1996.
How does this make you feel in your gut? Are you happy stocks are achieving new highs? Or does it scare you... tempt you to sell all your stocks… and run for cover?
Record High Prices Scare Investors
I talk with hundreds of investors... and I can tell you with 100% certainty record high stock prices scare most folks.
A financial advisor told me the other day: “Every client buying stocks right now is terrified. And those already in the market are nervous this is the top.”
I understand the feeling. Owning stocks at all-time highs can feel like standing at the top of a skyscraper and looking over the edge. After all... stock prices are higher than they’ve ever been. That can only mean danger. Right?
What if I told you record highs are nothing to fear? In fact, they’re cause for celebration.
You see when stocks hit all-time highs, more all-time highs are likely right around the corner. Since 1915 the Dow Jones Industrial Average has made over 1,350 new all-time highs. That works out at roughly 13 new highs a year.
According to 104 years of data, stocks climb an average of 7.8% in the year after they achieve new all-time highs. Even better, five years later, stocks rise another 32%, on average.
(Excerpt) Read more at riskhedge.com ...
The trailing stop is your friend.
I will gladly give up a few % of the market top if I can ride it all the way up and get off just before a big fall.
However, rates are terrible right now and that 3% bond due in 2040 at a discount is something you will own to maturity.
For the last two years we have been investing in dividend paying stocks with a 4 handle payout. XOM, D, SO, T, etc.
Basically, we only buy stocks of companies with good balance sheets, good CEOs, and good history of dividend increase/payout.
On top of all that is the CAVEAT that we only buy stocks (pfd) and corporate bonds of companies that SOROS and CHINA CANNOT undermine.
BTW...when T got near 40, we sold 25% from all accounts. We nearly doubled our money and T is having a little trouble. We rolled the money into D, MRO, XOM, PYPL, and TWTR, other growth stocks.
I fear interest rate risk more than market risk...and have for a while.
Volatility is (most likely) not dead. Buy on the dips.
Ole Fred would've TAPPED it out, dingbat.
He might even had Ginger tapping it out with him.
May God bless you.
My financial advisor has done VERY well by me.
YOU chose well. Good on you.
Oh yeah...something that is foreign to Democrats.
No Roulette for me.
In the end the house is the winner. But, who gambles thinking s/he is going to come out ahead? I sure don't. I like the crap tables because they have more action than the other tables...and excitement.
There is hootin' and hollerin' at the crap tables and DEAD silence at the other tables. Well, we went only to Las Vegas and only to the bigger casinos.
I know that whenever I played it was "here's the lucky lady" and such. I was no luckier than anyone else.
I haven't been to the casinos in YEARS but I doubt that the casinos have changed.
What a really very stupid post.
And YOURS was a most unChristian one.
I hope you're proud of yourself.
Well, it was a very stupid post.
And YOU continue to demonstrate your UNChristian behavior. How sad.
Would you like me to pray for you? I will, if you like.
No thanks, if you pray like you post!
Bulls make money, Bears make money, Hogs get slaughtered.
On top of all that is the CAVEAT that we only buy stocks (pfd) and corporate bonds of companies that SOROS and CHINA CANNOT undermine.
Thanks, I needed some cold chills just before bedtime. :^) Good thing to think about.
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