Investing at New Highs
While the first half of 2025 has certainly been volatile, as previously noted here the S&P 500 has rebounded nicely and closed at a new record high as recently as last Thursday. The Nightly News (is that still a thing people watch?!) love to highlight when markets reach new highs, and a natural human response to that news is to wonder if now is a good time buy or should you wait for a pull back?
Chart courtesy of BNY/Wealth weekly insights
As the chart above from BNY Wealth illustrates, history shows that investing at new highs yields similar returns over a 1-, 3-, and 5-year lens as when you are investing at lower levels. Despite the “Nightly News” making a big deal out of all-time highs, they should be viewed just like any other trading day. Generally speaking, maintaining a long-term perspective is the most effective way to build wealth, and avoiding the “fear” of investing during any both good and bad market periods fits that narrative.