How to invest your money when market is at all-time high

economictimes.indiatimes.com:

All-time highs are not always negative for the markets. Many investors often do not understand how to navigate through these upside movements in the market and end up losing the chance to maximize their returns. ETMarkets spoke to Arun Kumar, VP & Head of Research, FundsIndia, where he spoke about how to handle all-time highs in the markets. Excerpts:

What do you think about the common saying, “Buy low, sell high”? Currently, when markets are at all-time highs, what do you think investors should do? Are we near a crash?
Arun Kumar: Let's break it down into three lenses.

First, think of assets growing over time. Just like real estate or gold, they hit all-time highs repeatedly. Similarly, with equities, aiming for 12-15% returns aligns with GDP growth and inflation.

Translated, it means doubling every six years. So, let us say currently you are currently at 70,000 Sensex levels. So, if somebody says I am expecting 12% returns from equities, in other words, you are also saying that I expect this number to go to roughly close to 1,40,000 in the next six years and from there again you expect it to double.

So, somewhere it will be close to 2,80,000 in the next 12 years. Now, if this is your expectation, there is no way that you can hit that number without hitting an all-time high Remember, hitting all-time highs is part of the journey.

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