It's been six months, 300 points and 21% since the S&P 500 (^GSPC) began its ascent into record territory. The astounding, unbending rise has left countless casualties in its wake, especially those who have waited, and waited and waited for the better entry point that never came.
"It's extremely difficult to time this market," says Simon Baker, founder of Baker Ave Asset Management, in the attached video. "This is one of the most unliked rallies ever. The market continues to hit new highs and people are just getting more and more frustrated."
His advice: Stop waiting and get fully invested in stocks.
"Scared money does not make money. You need to be in equities at this stage," he says. "When the Fed, ECB and Japanese are throwing money into the market you need to be long U.S. equities."
A large part of his resolve comes from the fact that too many people are currently waiting for a correction. In fact, Baker says half of the audience at a recent high net worth conference he was speaking at admitted they were waiting for a 5% correction.
Of course, there is one class of investor that is fully enjoying and participating in the day-to-day climb --the passive (or index fund) investor. But the risk here, history would suggest, is that at some point people will inevitably get scared out of the market and then have to face the ''when to get back in'' question themselves.
Despite what many investors declare, Baker says he doesn't think people are waiting for much of a correction anymore. It's part of the reason why the dips have so far been shallow, and why he reiterates his core theme.
"Every strategist on Wall Street keeps talking about it, but it's crazy, you need to be long the market," he concludes.
- Simon Baker