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It happens like clockwork…
Every time the markets tap new highs, I get asked by nervous investors if they should buy stocks.
My answer is always the same.
Yes.
But only if this one condition holds true.
Let me give you an example of what I'm talking about.
This Stock Could Turn Every $1 Invested into $6.28 Million (Again)
Let's take a quick trip down memory lane as a means of setting the stage.
I can't tell you how many people I heard from back in 1999 that stocks were "expensive," there was "nothing to buy," and that stocks were extremely "overvalued."
All of which are sentiments you hear today under very similar circumstances. So much so, in fact, that the headlines we saw back then are almost interchangeable with those we see now.
The markets had enjoyed a healthy run that people feared was over. There were huge changes in our economy underway. And, last but not least, the war in Kosovo was in full swing as Serb soldiers forced nearly a million ethnic Albanians from their homes… and worse.
Just yesterday the markets touched new highs yet again. The economy appears to be growing, earnings are on the mend, and the future is arguably brighter than it has been in years. And, once again, yet another "hot war" looms.
I wouldn't hold it against you if you wanted to run for the hills or bury your head in the sand like an ostrich with a sign on your rear end saying "kick me when it's over." Just make sure you understand the irony of your actions if you do. To borrow an old expression, the more things change, the more they stay the same.
That sounds trite but what I want you to understand is that there is no more difficult time to invest than in a market that's doing very well for the hesitant or the uncertain.
Take Altria Group Inc. (NYSE: MO), for example.
The company was trading at or near all-time highs of $53 per share 18 years ago, which made it very "expensive" compared to other stocks. At the same time, legions of investors caught up in the excitement of the dot-com era found it boring. "Like watching paint dry" was a characterization I heard more than once from dollar-struck people enamored with the likes of Pets.com and Webvan.
Yet, Altria had a rock-solid business model and was tapped into the Unstoppable Trends we follow day in and day out around here. Not only did this give the company huge profit potential, but it gave those very same investors the thing they craved most – the potential for huge returns, high current income, and stability.
Since then, the stock has returned 1,589%, earnings have grown by 128%, and yield is still a rock-solid 3.3%. So much for the 'ol "things are expensive" argument, don't you think?
Today, I hear shades of the same thinking from thousands of con…
About the Author
Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.