Unless something dramatic happens in the next few hours, the S&P 500 will close at a new all-time high today — the first since October 8th.
One of the most common questions I get from clients is:
“Is it a good idea to invest at all-time highs?”
The answer: absolutely, yes.
So why does it feel so uncomfortable?
Because it goes against our instincts. We’re conditioned to want a “deal” — to buy when prices are lower. And when you invest at all-time highs, short-term performance often reinforces that discomfort.
Looking back at S&P 500 data since 1950″
- Over short-term horizons (1 day to 1 month), returns after all-time highs tend to lag slightly versus other periods.
- But when you zoom out — 3 months, 6 months, and 1 year — the difference disappears. In fact, at the 1-year mark, investing at all-time highs has historically outperformed investing on any random day.
The takeaway: short-term weakness is noise, not the signal.
Investing is simple, but never easy. Our emotions constantly try to pull us off course. Focusing on data — not feelings — gives investors the conviction to stay invested, or better yet, to put new money to work even when markets feel “too high.”
