The idea that “what goes up must come down” may seem true in the short term, but from a long-term, multi-year perspective it is simply untrue. Here are the facts: Since 1950, the US market has gained more than 1,300% all time high. That’s an average of 17 new record highs per year. Ultimately, these fresh peaks reflect the cash-generating capabilities of the underlying businesses in the long run. And it’s expected to keep getting better as AI and robotics continue to increase efficiency.
Why does an all-time high feel uncomfortable?
As the market reaches new highs, the fear of missing out (FOMO) becomes real for many investors. Yet, these same investors can remember buying at all-time highs last year only for President Trump Freedom The day to start sharp selling in the market. For those who didn’t have the cash on hand to spend on average during that crash, it certainly felt like a punishment for being greedy. Psychologists call this “regret avoidance”: the tendency to shy…
