The S&P 500 has crossed 6,500 for the first time, up 28% from a year ago. Many investors are nervous about buying at the top. But history says they shouldn't be.
What History Shows
The S&P 500 has hit new all-time highs over 1,200 times since 1950. Research from JPMorgan shows that investing at all-time highs produces average 1-year returns of 10.3% — nearly identical to investing on any random day (10.5%).
Why All-Time Highs Are Normal
- The market trends upward over time — new highs are the natural state
- Waiting for a dip that may never come costs more than buying "high"
- Missing the 10 best days over 20 years cuts your return in half
Smart Approach
Dollar-cost average into index funds regardless of market level. If you have a lump sum, research shows investing it all immediately beats spreading it out 67% of the time.
The real risk isn't buying at highs — it's not being invested at all. Time in the market beats timing the market, every time.
