--- title: From one Peak to Another... description: Are you skeptical to invest at the current market levels? Here we discuss the 3 important factors to consider when looking to invest at the current levels. image: https://www.financialplanningindubai.com/hubfs/from%20peak%20to%20peak%20%28800%20x%20400%20px%29%20%281%29.png --- [![Financial_Planning_in_Dubai_logo](https://www.financialplanningindubai.com/hs-fs/hubfs/Financial%20Planning%20in%20Dubai%20Logo_9090-2.png?width=90&height=90&name=Financial%20Planning%20in%20Dubai%20Logo_9090-2.png "Financial_Planning_in_Dubai_logo")](https://www.financialplanningindubai.com/?hsLang=en-gb) - [Home](https://financialplanningindubai.com/) - [Blog](https://www.financialplanningindubai.com/blog) - [Services](https://www.financialplanningindubai.com/services) - [Islamic Investments & Takaful Plans](https://www.financialplanningindubai.com/blog/salama-hyat-plus-takaful-plan) - [Medical Insurance](https://www.financialplanningindubai.com/blog/topic/medical-insurance) - [Free Resources](https://www.financialplanningindubai.com/free-finanical-tools) - Tools - Calculators - [S&P 500 Investment Calculator](https://financialplanningindubai.com/sp-500-investment-calculator/) - [Life Insurance Calculator](https://www.financialplanningindubai.com/life-insurance-calculator) - [SIP Calculator](https://financialplanningindubai.com/sip-calculator/) - [Lumpsum investment calculator](https://www.financialplanningindubai.com/lump-sum-investment-calculator) - [Inflation Calculator](https://www.financialplanningindubai.com/inflation-calculator-uae) - [Net-Worth Calculator](https://www.financialplanningindubai.com/blog/free-personal-balance-sheet-template-networth-statement) - [The Best Budget Planner for Expats](https://www.financialplanningindubai.com/expat-budget-planner) [Book A Discovery Call](https://www.financialplanningindubai.com/meetings/damodhar?hsLang=en-gb) # From one Peak to Another... ![Damodhar Mata](https://app.hubspot.com/settings/avatar/e63bc971ec29ebe6c012fd042c1a8215) [Damodhar Mata](https://www.financialplanningindubai.com/blog/author/money-mata-aka-damodhar-mata) 21 Nov 2021, 11:43:46 ###### [Weekly Market Update](https://www.financialplanningindubai.com/blog/topic/weekly-market-update) As the markets reach new highs almost every week, I am running out of adjectives to describe the optimism in the US stock markets. Last week, the Nasdaq rose to another record intraday high, while the S&P 500 is just short of its peak. The Dow, however, was down from the previous week, and the volumes were also relatively low.  While many investors are keen to invest their savings, they are also skeptical about entering at the current price levels, thinking that it is better to wait than entering just before a crash! But waiting on the sidelines is no fun either, as the money is sitting idle, exposed to inflation while the markets are growing from one peak to another—a classic double whammy of lost opportunity and wealth erosion. And, the later you enter the markets, the higher the risk of losses, as you might end up buying just before the crash! Also, FOMO, or the Fear of Missing Out, can creep in after extended periods of waiting, causing irrational exuberance and possibly leveraged investment to catch up on the missed opportunity. Already the FOMO is quite evident when looking at the current investments in the market, as investors are chasing higher returns through leveraged ETFs and CFDs. So the most crucial question now is, do market levels really matter? A peek into the history of the S&P 500 reveals that since 1900 the index has been at all-time highs or within 5% of its earlier peak more than half of the time.  Since 2013 the S&P 500 has been at all-time highs or within 5.00% more than 90% of the time.  Going by this trend, will the S&P 500 continue reaching new highs in the future? Well, it depends on three crucial aspects; 1. Earnings  2. Fundamentals 3. Outlook As long as the earnings are good, fundamentals are strong, and/or the outlook is positive, markets will continue to grow. So as an investor, you should consider these three aspects when looking to invest your savings instead of just the market price levels. Of course, you must also consider your investment goals, horizon, and risk appetite when finalizing your asset allocation.  ### Moving on to Europe European equities were almost flat or down last week, as the region faces another wave of Covid-19 infections. Some countries have reintroduced restrictions to curb the spread.  ### Moving further east to China and India Below par earnings, revenue, and Outlook from Alibaba Group discouraged Chinese investors last week. The CSI 300 was flat, and the Shanghai Composite index edged up 0.50%. ### India Indian equities were down last week as the Foreign Institutional Investors(FII) continued to sell throughout October Rs 13,550 crore ($1.8 billion) and November as well. Thanks to robust inflows from Domestic players, Sensex is hovering just below the 60000 mark and the Nifty around the 18000 mark. ## Outlook As a stellar earnings season just ended, and the fundamentals are still holding firm, markets could grow further in 2021 and 2022.  However, it is pretty easy to become greedy or complacent during extended bull runs, which can cause substantial damage if the markets tip over. It would be wise to be patient, stick to the fundamentals, trim excessive risks by booking profits on extended equity positions, and most importantly, stay away from leverage and speculation. Whether it is Holistic Financial Planning, Life Insurance, or Investing to grow your wealth, whatever your needs are, I am here to help. Arrange a Free Online  Meeting to discuss your objectives and explore potential solutions.  [Click here to arrange a Free Online Meeting](https://www.financialplanningindubai.com/meetings/damodhar/30-minutes-online?hsLang=en-gb) ## *Disclaimer* *Although we obtain information contained in our weekly market update from sources we believe to be reliable, we cannot guarantee its accuracy. The opinions expressed here are my own and may change without notice. Any views or opinions expressed in the above blog post cannot be constituted as financial advice. The information in this blog post may become outdated, and we have no obligation to update it.* *The information on my blog is not intended to constitute individual investment advice and is not designed to meet your personal financial situation. It is provided for information purposes only, and nothing herein constitutes investment, legal, accounting, or tax advice or a recommendation to buy, sell or hold a security.* *No recommendation or advice is being given as to whether any investment is suitable for a particular investor or a group of investors. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable.* *We strongly advise you to discuss your investment options with your financial adviser before making any investments, including whether any investment is suitable for your specific needs.* ![Damodhar Mata](https://app.hubspot.com/settings/avatar/e63bc971ec29ebe6c012fd042c1a8215) [Damodhar Mata](https://www.financialplanningindubai.com/blog/author/money-mata-aka-damodhar-mata) Author, Blogger & Independent Financial Advisor. My goal is to give you actionable tools for creating passive income and building wealth. More than 10,000 expats have already used my ideas to jumpstart their journey towards financial independence. Connect with me to start yours... Share this article on [mailto:?subject=Check%20out%20From%20one%20Peak%20to%20Another...%20&body=Check%20out%20https://www.financialplanningindubai.com/blog/from-one-peak-to-another](mailto:?subject=Check%20out%20From%20one%20Peak%20to%20Another...%20&body=Check%20out%20https://www.financialplanningindubai.com/blog/from-one-peak-to-another) ##### Read more - [The Real C-Suite – The Only Title That Matters 🏆](https://www.financialplanningindubai.com/blog/breadwinner?hsLang=en-gb) - [The Wealth Secret 99% of Investors Ignore – Will You?](https://www.financialplanningindubai.com/blog/the-iceberg-of-investing?hsLang=en-gb) - [From Risk to Reward? The Shifting Case for China Investing](https://www.financialplanningindubai.com/blog/from-risk-to-reward-the-shifting-case-for-china-investing?hsLang=en-gb) ## Further Reading [![Tom Lee's Bold Market Warning: Are You Ready for a 7-10% Dip?](https://www.financialplanningindubai.com/hs-fs/hubfs/Market%20Dip%20Alert-2.png?width=300&name=Market%20Dip%20Alert-2.png)](https://www.financialplanningindubai.com/blog/ready-for-a-7-10-dip?hsLang=en-gb) ##### [Tom Lee's Bold Market Warning: Are You Ready for a 7-10% Dip?](https://www.financialplanningindubai.com/blog/ready-for-a-7-10-dip?hsLang=en-gb) **Tom Lee Predicts a 7-10% Market Dip: Should You Be Worried?** [Read More](https://www.financialplanningindubai.com/blog/ready-for-a-7-10-dip?hsLang=en-gb) [![Who let the bears out?](https://www.financialplanningindubai.com/hs-fs/hubfs/Omicron%20variant.png?width=300&name=Omicron%20variant.png)](https://www.financialplanningindubai.com/blog/who-let-the-bears-out?hsLang=en-gb) ###### [Weekly Market Update](https://www.financialplanningindubai.com/blog/topic/weekly-market-update) ##### [Who let the bears out?](https://www.financialplanningindubai.com/blog/who-let-the-bears-out?hsLang=en-gb) Last week, the bears were out, busy pushing down the growth assets and scaring the bulls away to... [Read More](https://www.financialplanningindubai.com/blog/who-let-the-bears-out?hsLang=en-gb) [![Best Multi-currency Cashflow Forecast Template for Expats](https://www.financialplanningindubai.com/hs-fs/hubfs/Potential%20wealth%20forecast-1.png?width=300&name=Potential%20wealth%20forecast-1.png)](https://www.financialplanningindubai.com/blog/best-multicurrency-cashflow-forecast-template?hsLang=en-gb) ###### [cashflow planner](https://www.financialplanningindubai.com/blog/topic/cashflow-planner) ##### [Best Multi-currency Cashflow Forecast Template for Expats](https://www.financialplanningindubai.com/blog/best-multicurrency-cashflow-forecast-template?hsLang=en-gb) If cash is king, then cash flow is the emperor — the ultimate ruler of financial stability and... 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