Investing in stocks at all-time highs has historically led to significant growth

From Yahoo Finance: 2024-04-06 16:07:00

Investing during a bull market can be intimidating, especially when stocks are trading at all-time highs. However, history shows that this could be an excellent time to invest, as stocks tend to climb higher after reaching new peaks. The S&P 500 has historically seen significant growth after hitting record highs, with the index trading 8.5% above its previous peak in January 2022.

Stocks generally continue to rise after hitting all-time highs. In 1995, the S&P 500 closed at a record high 77 times, showing that new highs are a common occurrence. In 2024, the index has already closed at all-time highs 22 times in the first three months of the year, indicating further potential for growth.

One way to capitalize on the market’s performance is to invest in broad-based index funds like the Vanguard S&P 500 ETF. By tracking the S&P 500 closely, these funds provide investors with exposure to the top companies in the index. Another option is to invest in the Invesco S&P 500 Equal Weight ETF, which rebalances quarterly to provide more even exposure across all 500 members of the S&P 500.

Considering the long-term historical data, investing in stocks when the market hits all-time highs has proven to be a profitable strategy. While timing the market perfectly may be challenging, staying invested and focusing on quality companies or index funds can lead to significant returns over time. Ultimately, history suggests that now may be a good time to put your money to work in stocks.



Read more at Yahoo Finance: Is It Smart to Buy Stocks With the S&P 500 at an All-Time High? History Offers a Clear Answer