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The markets are charging higher as I write and, not surprisingly, that's got many investors wondering if the "fabulous five" tech stocks – Facebook Inc. (Nasdaq: FB), Amazon.com Inc. (Nasdaq: AMZN), Apple Inc. (Nasdaq: AAPL), Microsoft Corp. (Nasdaq: MSFT), and Alphabet Inc. (Nasdaq: GOOGL) – that we talk about frequently are too expensive to buy.
At least not if you understand what I want to share with you today…
Markets Surge After French Election
I'm not surprised that global markets are on a tear following independent centrist candidate Emmanuel Macron's sweeping victory in the first round of French presidential elections. The CAC broke through a nine-year high on Monday to close at 5,268.85, while Germany's DAX shot through to all-time highs and settled at 12,454.98.
Macron is promising to give away everything but the kitchen sink.
Scratch that… including the kitchen sink.
As I noted on FOX Business Network Monday morning, Macron wants to bail out France, Greece, and anybody with a pulse, practically speaking. As part of that, he wants to reinforce EU commitments and the euro.
In other words, his victory implies more spending, more stimulus, and more handouts. And that, in turn, implies higher stock prices ahead.
Naturally the doom-and-gloom crowd is out in force…
…stocks are expensive
…what goes up must go down
…primed for a crash
…Trump this, Pence that
…the Fed, the ECB
…North Korea, Russia
In my best Jerry Seinfeld voice – yada, yada, yada.
Putting more money to work is exactly what savvy investors should be doing.
Things were much the same in 1999 and again in 2007, when legions of folks believed the run was over, that stocks were "expensive," and that there was "nothing to buy."
I wouldn't hold it against you if you wanted to head 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.
What I want you to understand today 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.
The Most Successful Company in the World Was Once "Too Expensive"
Take Altria Group Inc. (NYSE: MO), for example.
The company was trading at or near all-time highs of $53 per share 19 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 …
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.