On page 206 of the revised edition of Graham's, "The Intelligent Investor", Graham states:
It is far from certain that the typical investor should regularly hold off buying until low market levels appear, because this may involve a long wait, very likely the loss of income, and the possible missing of investment opportunities. On the whole it may be better for the investor to do his stock buying whenever he has money to put in stocks, except when the general market level is much higher than can be justified by well-established standards of value.
If I can still manage to find reasonably priced or bargain individual stocks despite the general market conditions, why then should generally high price levels dissuade me from purchasing those specific stocks? Wouldn't doing so be heeding "Mr. Market's" unjustified opinions, as Graham puts it, contradicting the earlier advice to ignore Mr. Market to the investor's advantage?
Or is there some global, negative effect that generally high market levels have on all stocks, regardless of price level, of which I am unaware?