Buying stocks at all-time highs can yield positive returns based on historical data

From None.: 2024-10-02 05:00:00

As the S&P 500 hits an all-time high, investors may wonder if it’s smart to buy stocks now. Historical data shows that the market tends to keep rising after hitting new highs, with an average gain of 16% in the following year. This suggests that buying stocks at all-time highs can yield positive returns.

Despite periodic market downturns, long-term investors benefit from staying invested through market highs. Historically, the S&P 500 has continued to climb following all-time highs, with gains averaging 11% six months later and 16% one year later. This data supports the strategy of buying and holding stocks even when the market reaches new peaks.

When the S&P 500 hits new highs, it’s a signal that the market is in an uptrend. Historically, the index has shown an average gain of 16% in the year following an all-time high. This suggests that buying stocks during market peaks can still result in significant returns for investors who stay invested for the long term.



Read more at None.: Is It Smart to Buy Stocks With the S&P 500 at an All-Time High? History Provides a Clear Answer. – The Motley Fool