One of the toughest cognitive dissonances to shift is investing when markets are frothy. If the index is setting new records, there’s less room to grow and more room to lose out, surely?

That makes sense, but the data don’t agree. This week’s chart comes from Schroders’ head of strategic research, Duncan Lamont, who earlier this year attempted to assuage these fears.		 
 Bar chart showing the growth of $100 if investors keep their money investedAs the chart shows, remaining invested will always be your best bet. If you were to cash out your investments at the end of a month that ends with an all-time high and then reinvest, you would be losing an enormous amount of capital – and that’s not even factoring in trading costs.

I’ve said it before and I’ll repeat it: don’t panic, do sit on your hands, and only ever take a risk you can afford.

Easier to stay invested if your plan is for