Reply to Too risky to put extra funds in the market?

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[quote=Anonymous][quote=Anonymous]I have a pile of cash I'm sitting on and was going to dump it into the market and selected a number of stocks that appealed to me. Goal is long term holding, not short term. But then I looked at the stock history and was shocked to notice how steady the stocks were up till about 2016 and then it completely soared. Microsoft is a good example. It was fairly flat between 1999 and 2016 but jumped from $55 in that year to $400+ today! Same pattern for other tech stocks. The run up in the last few years is staggering.

Now I'm a bit worried. This can't be sustainable.

I'm not changing any of the automatic monthly contributions aka 401k/Roth but realistically the market must come down at some point, no? Or flatline for a steady 15 years? [/quote]

Widen your lens: https://www.macrotrends.net/2324/sp-500-historical-chart-data

No one knows what the stock market is going to do except on average it tends to go up because companies retain some of their earnings to grow their businesses and/or release them as dividends.  It may not go up at the same pace as before.  There could be a crash.  But on average it will still go up.  Individual stocks will vary far more widely and can lose all their value.
If you're nervous, put it in a high earning cash position and dollar cost average it into an index with a smaller percentage going into a selection of individual stocks [/quote]

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