Markets at record highs and euro / dollar both strong - does this impact your investment strategy?

MK62

HappyHarry wrote: »

But...

5 years ago, the S&P was also at a 5 year record high. Since then, it's gained around 120% (inc. dividends).

5 years ago, the FTSE100 was also at a 5 year record high. Since then, it's gained around 35% (inc. dividends)

You can spin these kind of stats the other way too though......if you'd invested in the S&P500 at the then record high in Aug2000, over the next 11 years you'd have made nothing, even including dividends, and if you also factor in inflation, you'd have actually lost money......just saying...;)

HappyHarry

MK62 wrote: »

You can spin these kind of stats the other way too though......if you'd invested in the S&P500 at the then record high in Aug2000, over the next 11 years you'd have made nothing, even including dividends, and if you also factor in inflation, you'd have actually lost money......just saying...;)

Indeed.

However, the OP was highlighting the last five years, not the 2000 to 2011 period.

Just saying

MK62

But a five year record high from five years ago covers a 10 year period.....still just saying....

MK62

The bottom line is that you either

invest with no regard at all to markets, valuations, currencies etc and basically take the view that as you are in it for the long term you should make money.....the "time in the market , not timing the market" view.

or

You do take a view on all this stuff and so "time" your investments accordingly...

Historic data exists to support both positions.....and always will as market entry and exit points can be changed to suit......which means it will basically boil down to personal opinion.....and experience.

As Warren Buffet (I think) once said though... "Even the very best companies can make lousy investments if you pay too much for them"