The "Too Late" Myth: Why Now Might Be the Best Time Ever to Start Investing

Look at the S&P 500 index (SNPINDEX: ^GSPC) today and you might feel a little queasy. It is, 100%, in the nosebleed seats, after skyrocketing in value over the past few years. In fact, the index's price-to-sales ratio is near the highest level in two decades at nearly 3.4 compared to the average of 1.9 over the span. You haven't missed out. Here's why you should still invest in stocks despite the market being expensive right now.Sales are the revenue that a company generates. Sales tend to be much more consistent over time than earnings and, thus, some believe sales provide a more reliable gauge of value. The price-to-sales ratio basically compares the price of an asset to its sales; the higher the ratio, the more you are paying per dollar of sales. Lower is better with this metric. As noted in the intro, the ratio is rather high today and well above the average over the past 20 years.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool