How to Invest in a Bull Market

livemint.com:

Exuberance is back in markets. A frenzy over artificial-intelligence technology has stoked a monster run in Nvidia shares. Major stocks indexes are clinching repeated records.

And even bitcoin is threatening to set a new high. In times like these, financial advisers caution clients not to let a fear of missing out drive their decision-making. They encourage them to diversify their holdings and stick with dollar-cost averaging—investing a fixed amount of money at regular intervals—because attempts to predict a market top or bottom rarely pay off.

Nonetheless, stock-market records often happen in clusters, they say, and this rally appears to be missing some of the classic ingredients of a stock-market bubble. That might suggest the market has more room to run. With euphoria running high, we talked to four everyday investors about how they are adjusting their playbooks.

Jordan Buchanan, a 35-year-old Navy officer stationed in Virginia Beach, Va., opted not to renew his certificate of deposit when it matured in January, even though he could have gotten a 5% yield. Instead, he plopped $10,000 into Nvidia, Super Micro Computer, Amazon.com and Microsoft, among other stocks. His portfolio is up 17% this year, outpacing the tech-heavy Nasdaq Composite’s 8.4% advance.

Buchanan says he expects growth stocks will jump even higher once the Federal Reserve begins cutting interest rates, whereas cash will likely start to lose its appeal. Technology and other growth stocks are particularly sensitive to changes in interest rates because they are often valued based on expectations of growth far into the future. “At the time I felt safe, but after seeing that things were working out a lot better in stocks, I just decided to dump it in