I first wrote about Mindful Investing At Market Highs in late 2014 (many points lower on, well, pick your index). At the time, I was receiving MUCH verbal hesitation from folks about investing because – the market was so high.
Today – the market (whichever one you look at) is even higher.
Because company earnings are at all time highs and there is a very plausible expectation that they will move even higher (coordinated global growth and domestic tax-reform).
Why are company earnings at all time highs?
Because the volume of goods and services demanded of those companies is at all time highs.
Why are the volume of goods and services demanded at all time highs?
Because we have more people than ever (the global middle class is exploding),
We are living longer than ever (life expectancies are increasing), and
We have more identifiable wants and needs than ever (the iPhone is only 10 years old).
At the same time, governments around the world are still very accommodative (though correctly becoming less so), and competing investments (fixed income) aren’t very attractive.
It’s really not that complex.
I closed that article the same way…
Relax. Smile. Return your focus again to you well-considered financial plan and act accordingly.
Just checking… You do have a well-considered financial plan, right?