Broker Check

Should you invest at market highs?

| February 17, 2021

Key Takeaways

  • With stock markets at all-time highs, concerns about an impending crash is a recurring theme that keeps investors with cash on the sideline.
  • History shows investing—even at market peaks— has generated strong positive returns for long-term investors. In short, time is money.
  • Data shows that lump-sum investing is a more efficient approach to building wealth over time. However, dollar-cost averaging may be a reasonable strategy for investors who might stay out of the market altogether due to fears of a large downturn after investing a lump sum.

Investors have learned the adage of buy low and sell high, but with stock prices at all-time highs, investors with money on the sideline wonder, should they still invest and if so how?

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