Kristin McKenna recently published a 17-page article in Forbes titled Should I Invest When The Market Is High? If you want to read it, go here.
In keeping with the Monday Morning objective to save you time and limit our posts to 500 words or less, we apply Kristin McKenna’s central tenet for our members to act on.
About 5,500 dental practices will sell in North America in 2022. The average price will be around $US700,000. Veterinary and optometry practices will similarly sell for big numbers.
Most selling clinicians will have more money than they have ever managed.
Should they invest when the market is as high as it is today or should they stay in cash?
Staying in cash just because the S&P 500 is setting new highs is a mistake. It is an attempt to time markets. The fourth habit of Monday Morning members is to buy and hold except to rebalance to one’s personal asset allocation when market movement requires it. No market timing!
Counterintuitively, investing when the market is high produces better results, as the chart at the top of this post shows.
If you are in a position to need to manage a large amount of cash, we recommend the following.