Earlier this week, someone asked me a question I hear often.
“If the market is at an all-time high, shouldn’t I wait to invest?”
It’s an understandable concern. But what if I told you that investing at all-time highs has actually been one of the most reliable ways to build long-term wealth?
Market Update
The S&P 500 pushed into new territory again this week. Inflation continues to ease. Corporate earnings have been strong, and the Fed appears less inclined to raise rates further. Consumer spending remains steady, and energy prices are holding. All in all, market fundamentals continue to support the current upward trend, despite a cautious tone from investors.
Wealth Strategy
Most people are taught to buy low and sell high.
But here is what the data shows and the mind blower.
From 1988 through 2023, investors who bought at all-time highs often outperformed those who invested on random days.
Why?
Because markets tend to hit new highs in the middle of growth cycles, not at the end.
Since 1950, the S&P 500 has reached new highs on more than 1,200 trading days. That means more than five percent of all market sessions.
If you waited for a better entry point, you may have missed some of the best days to invest.
Trying to time the market rarely works.
Investing consistently and sticking with a disciplined plan is far more effective over time.
Lifestyle Tip
This weekend, take 30 minutes to tackle one project you have been putting off.
Clear a drawer. Organize a corner of the garage. Sort through a pile of papers.
Keep it small and simple.
That one small win might create the momentum you need for bigger ones.
You May Not Know
Investing at market highs is not a rare event.
The S&P 500 has reached a new all-time high more than 1,200 times since 1950.
Those highs often come in clusters during sustained bull markets.
Rather than fearing them, long-term investors should recognize them as part of the natural rhythm of growth.
Final Thought
It feels natural to hesitate when the market is hitting record levels.
But historically, those who wait miss more than they gain.
Whether your goals involve growth, income, or protection, the key is to have a process and stay with it.
Footnotes and Sources
¹ Based on historical S&P 500 analysis from 1988 to 2023, as referenced by Ben Carlson of Ritholtz Wealth Management and Nick Maggiulli of OfDollarsAndData.com. These studies found that investing at all-time highs often produced comparable or better long-term returns than investing on randomly chosen dates.
² S&P 500 data compiled by JP Morgan and Bloomberg through 2023 indicates that markets reached new all-time highs on more than 1,200 trading days from 1950 to present.
Disclosures
The views expressed are for informational purposes only and are not intended as investment advice or a recommendation for the purchase or sale of any security or strategy. Past performance is not indicative of future results. All investing involves risk, including the potential loss of principal. Please consult with your financial, tax, or legal professional for guidance specific to your situation. Advisory services offered through Cetera Advisors LLC, a registered investment adviser. Member FINRA and SIPC.
© Guy A. Paredes, CPFA® RFC® RICP® | Rockdale Financial Services | www.ImagineRetirement.com
