Strategic Capital’s analysts believe the bull market that is now in its ninth year will continue, however that does not eliminate the anxiety it’s clients and investors in general may experience acquiring stocks at or close to all-time highs.
Strategic Capital point to historical statistics that offer assurance that investors with time horizons in excess of 5 years have a very good prospect of earning money over that time frame, regardless of whether they have the bad luck of buying prior to a downturn. This is particularly accurate for investors choosing a progressive strategy and employing dollar cost averaging.
“Buy low, sell high” is probably one of the most familiar stock market phrases. Making an investment when financial markets are at all-time highs would appear to fly head on into the face of this phrase, leading countless investors to think that investing at all-time highs is a strategy that is certain to lose money. However, is this actually the case?
Buying at an all-time high, particularly nine years into a bull market, may be daunting but after studying many similar situations Strategic’s analysts believe the likelihood that nearly any all-time high will undoubtedly be accompanied by another all-time high inside of a specific timeframe.
Strategic’s analysts point to the S&P 500 index which Analysis of the S&P 500 Index suggests that from the date of any given all-time high, the index has customarily reached a new all-time high inside of one month 91% of the time. Increasing this period to three months raises the likelihood to more than 97% and increasing 12 months the percentages reach 99%.
According to those odds, you have an extremely good chance of experiencing yet another all-time high shortly after you buy on one.
Founded in 2007 Strategic Capital Holdings has continually remained on a drive towards excellence, proud to stand side by side with our clients, proud of our achievements and proud that we have been given the trust and faith to assist our clients achieve their financial goals.
We offer the same individually tailored service to all our clients, we don’t differentiate between institutional investors or individual clients, every client has specific needs and we aim to ensure all our client’s trust and faith in our firm is met and exceeded.
We consider the best approach to achieving your financial goals is by focusing on a multi-asset path that incorporates: rounded asset allocation, Analyst lead insights, factor exposures, emerging market research and a structured portfolio implementation.