My Comments: This is a writer I’ve learned to enjoy over the past several months. I’ve used his articles before and I do so here again. He makes such good sense.
posted by Jeffrey Dow Jones July 17,2014 in Cognitive Concord
I get all sorts of questions from all sorts of different investors. As strange as it seems, this is one of the most common right now. Is it too late? Clearly the last bear market had a permanent effect on investor psychology. Nobody was asking this question in 2006 or 2007.
The question doesn’t always take this exact form. Frequently I hear, “Isn’t the market too expensive here?”, or, “The market can’t possibly keep going up, can it?” or its straightforward non-question variant, “I hate the market because it’s too expensive.”
Those are all different ways of talking about the same basic concept. The market has run a long way and investors have a new type of uncertainty about how much longer it can keep running.
Did I miss it?
Is it too late?
The simple answer is that, no, it’s not too late to get in. The market can keep running, and running, and running… and running.
Have you ever looked at a 100 year Dow chart? The trajectory is pretty clear. If you have a sufficiently long horizon and truly don’t care about picking tops or bottoms then now is as good a time to buy as any.