The stock market recently surpassed two very meaningful price points. The Dow Jones surpassed 14,000 and the S&P 500 reached 1,500 for the first time since 2007. Many people are now starting to wonder whether we are “due for a correction” or are we at a market peak. As I write this article the market indeed has pulled back from these highs. But what, if any, influence should these index levels have to do with investing long term?
I think there are at least a few important questions to consider when this type of thinking creeps into our heads.