The caveat here is, of course, if you buy a stock at a new high you have to know what you are doing. The new high puts the stock technically into the right position for a move up. Now you have to make sure that the fundamentals justify your investment. Some new highs are near the end of a trend. It is usually easy to identify those overvaluations.
Nothing grows to the sky.
You must be careful though, if a stock has had a high multiple for the last five years and its earnings are growing fast, you can assume that the stock will have a high multiple in the next few years. All rights reserved. The Copyright Act of 1976 prohibits the reproduction by photocopy machine or any other means of any portion of this report except with permission of the publisher. 2000 Post Road, Suite 200, Fairfield, CT 06430. Our reports are based upon information gathered from various sources believed to be reliable but are not guaranteed as to accuracy or completeness.