About this Video

• Video Title: Should You Invest In Stocks At All-Time Highs?
• Channel: Sasha Yanshin
• Speakers: Sasha Yanshin
• Duration: 00:14:49

Introduction

This video addresses the question of whether to invest in stocks when the market is at all-time highs. Sasha Yanshin uses historical S&P 500 data (including dividends) over 98 years to analyze market returns and debunk common assumptions about market crashes following periods of high returns.

Key Takeaways

• Market Returns: The average annual return of the S&P 500 over 98 years, including dividends, is approximately 11.6%. Only 14 years had returns within 5% of this average.
• Consecutive Good Years: The probability of a negative return following one, two, or even five consecutive good years remains relatively consistent with the overall average, negating the common belief that a downturn is imminent after such periods. Only after eight consecutive years of positive returns does the likelihood of a negative year exceed 50%.
• All-Time Highs: All-time highs are frequent occurrences in the stock market and don't inherently predict an upcoming crash.
• Market Crashes and Returns: Some of the best years in stock market history followed market crashes; therefore, avoiding investment during a downturn can lead to missing significant gains.
• Human Productivity: The stock market's long-term upward trend reflects increasing human productivity and technological advancements.