A few nights ago, I was teaching my kids about The 5 Second Rule – and not the one about eating food you’ve dropped on the floor. I was talking about Mel Robbins’ book The 5 Second Rule, which is all about taking action before your brain talks you out of it.

Her idea is simple: when you feel the instinct to do something that will improve your life, count backwards 5-4-3-2-1 and act. Why? Because hesitation triggers self-doubt and self-doubt triggers self-sabotage. Left unchecked, our own brains become masters at talking us out of things.

And that’s exactly what happens to investors. When markets hit new highs, people say things like:

·    “I’ll wait for a pullback”

·    “Feels risky up here”

·    “I’ll invest when it cools off”

That hesitation feels safe, but it can mean missing out on returns, as the chart below shows:

Four key points it’s worth remembering when markets are at record highs:

·    Markets spend most of their time near record highs

·    New highs are not a signal to stop investing

·    Time in the market beats timing the market

·    The real enemy isn’t volatility, it’s hesitation

It can sometimes feel tempting to do nothing – to put investing on hold and wait for a potential dip in the markets. But history shows that waiting for the ‘perfect moment’ can be the biggest risk of all.

Key takeaway

In a world of market noise – with headlines trumpeting political uncertainty, interest rate debates and geopolitical tensions – it’s easy to freeze. But in investing, it’s consistency that counts – and it beats waiting for perfection.

When in doubt: stay invested, be consistent and remain focused on the long term. New market highs aren’t something to fear. They’re often a signal of progress.

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This article is provided for general information purposes only and should not be construed as personal financial advice to invest in any fund or product. These are the investment manager’s views at the time of writing and should not be construed as investment advice. The opinions expressed are correct at time of writing and may be subject to change. Capital is at risk. The value and income from investments can go down as well as up and are not guaranteed. An investor may get back significantly less than they invest. Past performance is not a reliable indicator of current or future performance and should not be the sole factor considered when selecting funds.