Investment Strategies with Aileron

By: Bill and Cindi Porter, AILERON INVESTMENT ADVISORS

Q: Is it too late to invest in the stock market since it’s hovering around its all-time high?

A:No, it is never too late. In 1957, the S&P 500 was first developed as an index. If you had decided not to invest, thinking it was too late because of a new market high, you would have been wrong 1,105 times.1 That is how many new market highs have occurred since 1957. Many times, the market will pull back temporarily to test the strength of a new market high. However, given that all 1,104 previous market apexes have been replaced by new market highs, history suggests that it is not a matter of if there will be a new highpoint, but simply a matter of when.

Any money an investor commits to the stock market should be coupled with a time commitment of at least a few years. Even longer is better. Any less of a time commitment exposes the investment to a higher level risk. Even with the long list of new market highs, remember there have also been many market downturns in between, and some may have resulted in a loss of principal. Staying the course over the long haul and being flexible on the timing of the eventual withdrawal, is a time-honored strategy that has worked well over the decades. The last 1,104 pullbacks were actually buying opportunities because the lower stock prices were effectively “ON SALE.” When the markets eventually rose again to new highs, the sale was no longer in effect. Some investors buy securities every month to average the acquisition price and mitigate the dynamics of timing.

If you have some funds that are truly earmarked for the long-term, you may want to ask your trusted advisor if there is any reason for you to delay investing now in the long-term markets – especially considering that banks are keeping nearly all their earnings and paying investors less than 1%.2

Sources: 1) Invesco Funds, Bloomberg L.P. 12/31/20.
2) http://www.bestrates.com/savings accessed 7/16/21.

This is for education only. Before using this information in any way discuss it with a financial professional. There are many risks associated with stock trading. You may lose some or all of your financial investment. Securities offered through Dempsey Lord Smith, LLC Member FINRA/SIPC. Securities offered through Integrated Financial Planning Member FINRA/SIPC. Advisory services offered through Dempsey Lord Smith, LLC. All the information in this letter is published in good faith and for general information purposes only. We do not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information is strictly at your own risk.

Send your investment questions to: submissions@SuwaneeMagazine.com.

All the information in this letter is published in good faith and for general information purposes only. We do not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information is strictly at your own risk.

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