Is the FTSE 100 all-time high a once-in-a-lifetime chance to get rich?

At FTSE 100 just a whisker away from an all-time high, and you may have already hit it by the time you read this.

London’s blue-chip index is now at 7,845.91, less than 60 points below the record of 7,903.50 set four years ago in May 2018. It feels longer than that, of course, because we have seen the beginning of the Covid pandemic, the war in Ukraine, and the cost of living crisis since then.

I would buy the FTSE 100 record high

A rush and a push and the FTSE 100 record is there for the taking. With luck, it will race over 8,000 for the first time, and then keep going up. It looks like a once-in-a-lifetime chance to get rich, but it’s not. The people who are making money now are the people who invest for the long term, when the FTSE 100 is lower.

I don’t get too hung up on the FTSE 100 headline level. It seems important, as it is updated every day in the news, and is considered a barometer of British economic sentiment. And of course it’s big when the FTSE 100 climbs, as the online portfolio flushes blue, and the total in the Stocks and Shares ISA platform is bigger.

If no one pays for the portfolio that day, it makes no practical difference. The important thing to remember is that the FTSE 100 suddenly goes bad, because it always will. It doesn’t matter either, unless you have to sell that day.

I will not change my behavior if the all-time record has been smashed and the FTSE 100 roars to 8,000, 9,000, 10,000, or beyond. I also won’t switch strategies if it falls below 7,000 or worse.

I have bought FTSE shares for 20 years, and hope to do it for another 20 years or more (if I live long). Whether the index goes up or down, I buy it.

I will also buy when the stock goes down

I prefer to buy stocks when the index is down, because I am taking more stocks for the same amount of money. Also, dividends that are reinvested buy more stocks, which will become more expensive when the index bounces back. Also, I like to buy when stocks are down 10% or 20%. Who doesn’t love a bargain?

There are still plenty of low-value companies listed on the FTSE 100, despite the current highs. Stocks don’t all go up or down at the same rate as the index as a whole, obviously. So it’s rare to find something of value.

I like the FTSE 100 at an all-time high, because it has underperformed the global stock market for years. But my personal portfolio holds up well, because I buy individual stocks instead of the entire index.

The FTSE 100 does not offer a once-in-a-lifetime opportunity to strike it rich. However, it gives me a chance to live a rich life, and I will not squander it.