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<Are these the worst times in history to buy stocks when the S&P 500 and Nasdaq Composite are at record highs?>

옛날에는 많은 사람들이 바보였지만, 지금은 전혀 다르죠

As the U.S. stock market flares up again, it seems to be a good article that came out at a time when major indexes are hitting all-time highs, so I brought it because I thought it would be good to watch it together.

Is it really the worst time in history to buy stocks these days when the U.S. stock market is at its peak? article titled.

The S&P 500 and Nasdaq Composite, the main players of the U.S. stock market, are already reaching their all-time highs, and in that sense, some are expressing concern by saying that they will be bitten if they buy because they are at their peak.

In the article, we're going to start with a point,

1. In the stock market, high prices are not always bad,

2. Buying stocks at high prices for the right reasons can be rather a great investment decision.

It's a very relatable part, because I think we'll know later on, and what's important is how much equity I take in a good company!! If you only judge the low point, you can't do anything..

And the article continued to focus on Microsoft, especially in the US stock market.

Microsoft is also on a good rise, topping Apple by market cap, and of course, there's talk of a high!

With the major indexes reaching all-time highs, investors may wonder if this is a bad time to buy stocks. The Nasdaq has nearly doubled in five years, and the S&P 500 has reportedly risen more than 70%. He stressed that this doesn't mean we have to press the sell button and run away!

In that sense, it was also said that even great companies like Microsoft would still be good to buy, despite their current value being higher than at any point in history.

- change one's view of prices

Price increases are often inconsistent with increased benefits, and the article explained, for example, that the price of eggs has risen not because they have suddenly increased their nutritional value or improved taste, but also because demand generally outstrips supply, not because all houses are magically better than before.

He pointed out that because we are so used to the fact that high prices are bad in our daily lives, we can have the same illusion in the stock market, so we need to make steady efforts to realize that the stock market is different. In fact, stocks can be better traded at higher prices!

This is possible because buying a company's stock is completely different from buying a product or service, where for a company it can become even more valuable for a variety of reasons, including increased revenue, increased growth, improved efficiency, improved financial indicators, continued dividend increases and share buybacks!

- A better business deserves a higher rating

Microsoft has shown a crazy rise of nearly 1,000 percent over the past decade, which is even more surprising because it was a big tech go-ahead company that seemed to have stopped growing. However, Microsoft was able to drive this profit increase by developing a much higher quality business.

As such, the recent stock price is at an all-time high, but it is well worth it because sales growth is matching it and operating profit ratio is much higher than before.

Microsoft, which is also active in shareholder returns, has been raising significant dividends every year and has used share buybacks as well, so its number of shares has declined by nearly 10% over the past decade. Share buybacks are increasing earnings per share and making each issued stock worth even better!

In that sense, Microsoft may be able to think about whether it is a high-point purchase at first glance, as its stock price is hovering around an all-time high and its valuation is increasing.

However, the quality of the business, from profitability to various ways of rewarding shareholders, is also improving over time, so a common saying is that this could be the cheapest time. I think the long-term strategy for winning a good company's stake is to compete in quantity rather than in terms of return.

- the right way to invest

It is natural that skepticism can arise when major indexes are hovering around record highs. Most bull markets are generally a mixture of high prices due to improved fundamentals and bubbles due to greed for fast returns.

If you feel like you're buying stocks at relatively high prices, it's also important to see if the stock is rising for reasons that can support the stock's rising value in earnings, growth and general investment logic.

Even if you act too timidly, you can miss out on good growth opportunities. What you feel while investing is that the key is the number of good companies!! No matter how good the return is, you can't enjoy meaningful returns if you don't have a lot of stocks...!

Finally, the article said that for a number of reasons mentioned above, this is not the worst time to buy stocks in history, and instead it is especially important to understand and study what the company does or why I want to own it when the stock looks relatively high!

(출처 : The Motley Fool, With the S&P500 and Nasdaq Composite at all-time highs, is now the worst time to buy stocks in history?)