Should You Really Buy Stocks With the Market at Record-High Valuations? Here's What Warren Buffett Is Doing.
The S&P 500 has soared in the double digits over the past two years as investors have piled into growth stocks and bet on their successes in a lower interest rate environment. Growth companies generally outperform when they can more easily borrow to develop and expand, and a stronger economic backdrop means consumers have more money to spend on these players' products and services.So, in a bull market, there's reason to buy and hold growth stocks. The gains over the past two years have been fantastic, but they've also resulted in something that isn't so great: higher valuations.Stocks have become much more expensive than just a few years ago, reaching record levels. That may prompt you to wonder whether you really should buy stocks today. To help answer the question, let's turn to one of our favorite market experts, billionaire Warren Buffett, and check out what he's doing.Continue reading
The S&P 500 has soared in the double digits over the past two years as investors have piled into growth stocks and bet on their successes in a lower interest rate environment. Growth companies generally outperform when they can more easily borrow to develop and expand, and a stronger economic backdrop means consumers have more money to spend on these players' products and services.
So, in a bull market, there's reason to buy and hold growth stocks. The gains over the past two years have been fantastic, but they've also resulted in something that isn't so great: higher valuations.
Stocks have become much more expensive than just a few years ago, reaching record levels. That may prompt you to wonder whether you really should buy stocks today. To help answer the question, let's turn to one of our favorite market experts, billionaire Warren Buffett, and check out what he's doing.
