Investing at all-time highs doesn't hurt returns, market timing can backfire

From Barchart: 2024-06-28 14:14:48

Stocks have hit new all-time highs after recovering from the 2022 downturn. On average, bull markets last 45 months and return 118% after hitting an all-time high since 1940. The S&P 500 has reached over 1,290 new highs since the 1950s, with global stocks rising after hitting a new high 78% of the time.

Investing at all-time highs doesn’t necessarily hurt returns. Market timing using arbitrary price levels can backfire. Average forward MSCI World Total Returns show that investing at an all-time high isn’t much different than investing on any given day. All-time highs are not predictive indicators but rather reflect where stocks have been.

Fears over all-time highs are overblown. Analyzing investor expectations and economic conditions can help assess if a high marks the end of a bull market. To learn more about the impact of new all-time highs on markets, watch a video from Ken Fisher, founder and Co-CIO of Fisher Investments. For additional market insights, read the latest articles from Fisher Investments.



Read more at Barchart: Fisher Investments Reviews What All-Time Highs Might Mean for Investors | Insights