The stock market’s really going for it. The S&P 500’s just a scratch from its October 9, 2007, all-time high of 1,565. Is it time to pop the champagne bottle and celebrate?
We’ll let you decide. But do you recall what happened just after the October 2007 high was notched? The stock market then went into freefall for nearly a year and a half.
By March 8, 2009, the S&P 500 bottomed out at 676…for a loss of 56.8 percent. Since then the S&P 500’s run up over 120 percent. Some say it will go higher.
Perhaps it will. But if you believe that the key to making money in the stock market is to buy low and sell high – not buy high and sell low – then now is not the opportune time to invest. Of course, there’s the possibility you could buy high and sell higher. However, like jaywalking across an interstate highway, the potential risk and reward are not very favorable.
Still, people are tripping over themselves to get into stocks at a record pace… Continue reading







