“The market can stay irrational longer than you can stay solvent.”
—John Maynard Keynes
Source: Vision
In other words, what influential economist and successful investor John Maynard Keynes is saying is that you may be correct that a market or sector is overvalued but wrong on the timing when it comes to investing.
And, timing the market is a fool’s errand, as no one can truly know the stock market’s peak or trough.
In terms of timing, 2020 has been a crazy year for the US stock markets.
The combination of events like the oil shock and worsening of the COVID-19 crisis that broke out earlier this year, sent the S&P 500 index falling about 34 per cent from 19 February to 23 March 2020 (~5 weeks).
This COVID-19 crash and bear market did not last long as the recovery came fast and furious.
The S&P 500 then wen on a bull-run, taking about just six months to recover to its February peak this year....