Peak to peak: Record highs are business as usual for markets

The last few years have been a real rollercoaster ride for investors. After the COVID crash in early 2020 — the fastest bear market (defined as a -20% decline) in history — markets bounced back rapidly only to get hit by another bear market in 2022. However, since the October 2022 low, markets have improved, and particularly so in the latter months of 2023 and early 2024. This month the MSCI All Country World Index (ACWI) hit a new record high. Some investors are now asking “have markets now run too hard, should I be taking money off the table?” Our response is not dissimilar to when shares were in the doldrums – timing markets consistently well is (at best) exceptionally hard, you’re better to stick to your long-term plan and not chop and change too much in response to market conditions.