Why Investing at ATH ISN'T as Bad as You Think: Evidence From JP Morgan Private Bank

When a crypto hits a new all time high, people are wary to invest. However, evidence from JP Morgan shows that investing at ATH isn't as bad as you may believe.

JP Morgan found that if you were to invest in the S&P500 only at local all time highs compared to investing a small amount everyday, you would actually outperform.

S&P500 returns, investing any day vs investing only at all time highs. Source: JP Morgan Private Bank

Why does this occur?

When a stock or crypto reaches a new ATH, it has to pass through an old ATH i.e. a new ATH is preceded by an old ATH. This may sound dumb but an example may help:

Bitcoin on 21/10/2021 was at $62,210 an ATH at the time. It then kept going up peaking at $67k, breaking a new ATH each time i.e. $62,211, $62,212, $62,213. Each ATH is preceded by another ATH.

Mitigations

The evidence here is not quite as useful as it is from the S&P500, which is less volatile than crypto. I would love to see the same methodology be applied to the crypto market.

Buying a shitcoin at ATH will ofc still be terrible. You can't just buy any random coin at ATH and expect to profit.

Things to learn

Buying at ATH is not as risky as one may think. Here are some things which will help you profit while doing this:

- DYOR and actually believe in the coin

- Buy projects with solid fundamentals

- Don't sell if there is a retrace from ATH (i.e. HODL and don't buy high sell low)

Tl;dr Investing at ATH is not as bad as you think.

Edit: not advocating buying at ATH, just it's not as bad as you think. Some overreaction in the comments imo