But there are a number of reasons NOT to take any action.
First, timing market tops and bottoms is a difficult, if not impossible, challenge. Not only do you have to decide when to get out of the market, but then you need to choose when to get back in, whether you were right or wrong about getting out in the first place. If you are wrong, and people usually are, you run the risk of missing out on further advances. What would that look like?
Another way to think about the market hitting new highs is to look at what longer-term market performance has been historically after reaching these heights.
Remember, your investment strategy is based on a long-term approach. When we talk about expected returns for a portfolio, that takes into account market ups and downs. To achieve long-term market returns, you have to be in the market.
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