Stocks aren't scary despite their all-time highs

🔸 Plus: Scottish golf courses are falling into the sea 🔸 They stopped wearing ties at Goldman Sachs 🔸 1 in 5 people retire, and then unretire, because they didn’t save enough 🔸

Today’s 2-minute guide to demystifying money and making you richer

Why stocks aren't that scary

On March 25th, Moneyin2 asked, how should you invest when stocks hit an all-time high? Our answer: Ignore today’s headlines and invest for the long run. There will be many ups and downs along the way and trying to time them by buying low and selling high is, statistically, a fool’s game.

Two days later, the Bank of England warned that stocks were now so high there was a “risk of a sharp correction”. The bank’s Financial Policy Committee wrote:

“… the prices of many assets such as shares and bonds have gone up. Their value appears to be high relative to historical norms, in the context of risks to the economic outlook. That means there is a greater risk of a sharp fall in asset prices, which could ultimately make it more costly and difficult for UK households and businesses to borrow.” 

This feels like something to worry about. But is it?

Here’s what the S&P 500 index of stocks looks like over the…