In a cycle of investor enthusiasm, the S&P 500 is up nearly 15% so far this year. As investor sentiment improves, the market keeps rising. 

One of the ironies of investing is that many investors get scared during bear markets and pull their money out, even though it's precisely at those times that you'll find the best deals to optimize your investments. Then they get excited during bull markets, but often miss the right time to buy.

When buying all-weather stocks, picking your moment is not such a problem, because you can expect them to gain over the long term. But when investors buy hyped-up stocks with high valuations, they're setting their portfolios up to take a fall.

Continue reading

Source Fool.com