All-Time Highs: Why Waiting to Invest Could Cost More Than You Think

Shallon Weis |
Categories
Finance
Investments

Throughout your investing journey, you’ll encounter market highs and lows—some of which dominate the headlines. When markets reach record levels, like “Stocks Hit Record Highs. What’s Behind the Rally?”, many investors start to second-guess their next move.

At Bradford Financial Center, we know it’s natural to feel uncertain when markets climb. But history and data tell a compelling story: waiting for the "perfect" time to invest often results in missed opportunities.

📈 Let’s explore why staying invested may be your smartest strategy.

The Myth of Market Timing

It’s easy to hesitate when markets hit new records. No one wants to be the person who “bought at the top.” But this fear overlooks a key fact: market highs are not unusual—they're routine.

Since 1950, the S&P 500 has hit more than 1,250 all-time highs—that’s about 16 new highs per year. If you avoid the market every time it peaks, you risk missing out on long-term gains.

What History Says About "Bad" Timing

When the S&P 500 reached a new high in January 2024—its first in over two years—it sparked concerns about investing at a peak. But looking at 13 similar instances since 1958 reveals:

  • 12 of those 13 times, the market was higher a year later, averaging a 15.3% return
  • 11 out of 13 times, the market was still up two years later, averaging a 23% return

These outcomes aren’t guaranteed, but they clearly show that all-time highs have often been followed by continued growth.

🕒 Talk to a financial advisor about your long-term plan

The Real Cost of Waiting

Think of it this way: avoiding investment because prices are high is like waiting for gas prices to fall before refueling. You may save a little in the short term, but it complicates your journey—and may delay your progress.

Investors who sit in cash while the market climbs often end up chasing returns later, instead of participating in them.

💡 Learn how we help clients stay invested with confidence

How to Build a Patient Investment Strategy

Market cycles are inevitable, but timing them consistently is nearly impossible. Instead of trying to predict the next high or low, focus on these time-tested principles:

✅ Consistency over timing
Investing regularly—even during market uncertainty—can help reduce emotional decision-making.

✅ Time shapes outcomes
Over longer horizons, the timing of your entry matters less than the fact that you stayed invested.

✅ Diversification spreads exposure
A diversified portfolio may reduce risk by not depending on one investment or market.

📊 Get a customized investment plan for your goals.

Ignore the Timing Temptation

Market timing may feel smart in the moment, but the data shows it’s rarely effective long-term. Instead, success tends to follow investors who stay the course, especially during market highs.

Choosing time in the market over timing the market can lead to stronger outcomes and less stress.

🤝 Schedule a conversation with our team today to build a strategy that works in all market conditions.

Sources:

  1. Barron’s, 2025 [URL: https://www.barrons.com/articles/stock-market-hits-record-highs-tax-bill-jobs-6f818d48]
  2. Bloomberg, RBC GAM, 2024 [URL: https://www.rbcgam.com/en/ca/learn-plan/investment-basics/investing-at-all-time-highs/detail]
  3. Forbes, 2024 [URL: https://www.forbes.com/sites/wesmoss/2024/01/31/what-an-sp-500-all-time-high-could-mean-for-your-investments/]

This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2025 Advisor Websites.