In today’s show, we tackle a Frequently Asked Question about whether I should wait to invest in stocks because of where the market is at.
The Dow closed above 17,000 last week. Inevitably, here are the four articles you will see all week:
- Stocks have more room to run!
- Stocks are in a bubble and are going down!
- You should still invest even though stocks are high.
- You shouldn’t invest because stocks are in a bubble.
Today, I want to help you set yourself free from the fear and worry of the whole thing. The key to being free is education and understanding.
Remember that the news thrives on attention. Everyone is shouting, “look at me!” And, remember that fear and greed sell. Fear sells more though.
To set yourself free:
- Remember that most people don’t own stocks. If you do, consider the basis of your analysis:
- Fundamental analysis
- Quantitative analysis
- Technical analysis
- Value investing
- Technical investing
- Swing trading/Day trading
- Understand your actual strategy. What is your portfolio built to do?
- Passive investing and the Weak, Semi-Strong, and Strong form of the Efficient Market Hypothesis
- Active investing
- Apply it within the context of your financial plan. Consider your time horizon, your cash flow and your reasons for investing in what you’re choosing to invest in.
Stocks are only one way to invest. Consider carefully why you’re doing what you’re doing.
News articles mentioned today:
- Stocks are Picking Up Speed: Dow Tops 17000 for First Time, and Many Investors Bet the Five-Year Bull Market Has More Room to Run.
- Why US stocks aren’t overvalued, yet.
- Stocks Tumble – Give Up All the “Great” Jobs Report Gains
- Nothing’s Cheap Anymore
- Stocks Are Officially More Overvalued Than During The Last Bubble Peak
- Current “Wealth” Is Transitory: “The Risks of Failing to Act Should Not Be Underestimated”
- The Stock Market is Overvalued, Caution is Warranted
- With Stocks So High, Should Investors Move to Cash?
Resources mentioned today:
Thanks for listening!