Heights can be dizzying.
But there’s no reason to fear buying stocks at records.
In a blog post, Meb Faber, co-founder and chief investment officer of Cambria Investment Management, found that buying stocks at all-time peaks — and otherwise being in government bonds — returned more than just holding stocks.
Buy at highs? Why not?
Faber did point out that he wasn’t suggesting buying at highs as a strategy, but merely pointing out that it’s no reason not to purchase equities.
On Wednesday, the Dow Jones Industrial Average DJIA, +0.00% and the S&P 500 SPX, +0.96% finished at their second-highest level in history, and the Nasdaq Composite COMP, -0.29% finished at the third-best level.