The 50-day moving average of new high prices for equities traded on the New York Stock Exchange has fallen quickly from its peak in October. You can see on my chart below that new highs are nearly down to their 2022 levels.
The dwindling number of all-time highs comes amid market volatility that has given equity investors heartburn.
It’s times like these that some investors could begin to consider trying to time the market, jumping in and out with their “gut feelings.” This can be disastrous. Often, market volatility is quick to reverse, and jumping out of the market after a drop can lead investors to miss the best days of the rebound.
Action Line: Sticking to a solid investment plan that includes diversification is, as Harry Markowitz explained, the only free lunch in investing. Gold, bonds, and other assets in addition to equities, can add balance to your portfolio. When you want to talk about a balanced portfolio, email me at ejsmith@yoursurvivalguy.com. And click here to subscribe to my free monthly Survive & Thrive letter. My most recent letter discussed owning bonds, gold miners, and when to buy and sell.
