As of close of trading Friday, stocks closed at all time highs posting a strong week of gains. As the market screams higher, stocks trading at reasonable prices become harder to find. Johnson & Johnson (NYSE: JNJ) is a fantastic company that is surprisingly inexpensive.
The times when the stock market is at extremes, is when it most rigorously tests the limits of investor psychology. When markets are doing poorly, the temptation is to sell to avoid further losses. When stocks are at all time highs - like they are currently, the temptation is to buy what has already risen 20% because human emotion wants you to believe that there is another 20% left in the run. That you are missing out, while others are riding the elevator from the ground floor. This leads investors to try and time the market.
