/The Tell: Why there’s no reason to fear buying stocks at record highs

The Tell: Why there’s no reason to fear buying stocks at record highs


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, +0.07%

finished at their second-highest level in history, and the Nasdaq Composite

COMP, -0.29%

finished at the third-best level.

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