By Stocks have to be the only entity in the world that become more attractive to investors as the price goes up. Imagine if prices at Macy's were at all-time highs this Christmas? It's safe to say there'd be no lines and unbelievable service.
But if you apply the same attribute to the Dow Jones Industrials (^DJI), for example, it's only then that people really start to get interested.
"Decades of research into behavioral analysis suggests that people chase returns," says Jeff Kleintop, chief market strategist at LPL Financial who just published a report on the subject. "They don't get ahead of them, they get behind them."
And right now, as he explains in the attached video, there's an even greater enticement out there than the seemingly endless string of new all-time highs that stocks have posted this year. Specifically, five-year average returns.
Keep reading: Performance Anxiety: Here’s Why Investors Will Continue to Chase Stocks Higher | Breakout – Yahoo Finance.
