Is It Really Safe to Invest in the S&P 500 at Record Highs? History Offers a Clear Answer.
Written by David Dierking for The Motley Fool -> All-time highs can frequently be followed up with new all-time highs. Even if you'd invested at the peak of the worst bear markets this century, you would've generated good long-term returns if you stayed invested. Successful lo
All-time highs can frequently be followed up with new all-time highs.
Even if you'd invested at the peak of the worst bear markets this century, you would've generated good long-term returns if you stayed invested.
Successful long-term investing requires consistency, discipline, and continuous regular contributions.
After falling around 9% from its all-time high in March, the S&P 500 (SNPINDEX: ^GSPC) sharply reversed course and continued setting new records in April and May. Year to date, the index is up 9%.
After double-digit gains in 2023, 2024, and 2025, investors who've missed out on any part of this rally might feel like it's too dangerous to put money in stocks at record highs. In times like these, you often hear the refrain: "It's too late."
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The truth is that if you're a long-term investor, it's almost never too late. Even if you invest at the peak of some of the worst bear markets in history, your chances of experiencing another eventual new high are pretty darn good!
2026 is a good example of what can happen during more normal market conditions. Even with concerns about inflation, the Iran war, and the growing belief that the Fed won't be able to cut interest rates this year, the S&P 500 has set 24 new all-time closing highs so far this year. Even if you'd invested right before the 9% pullback earlier this year, you would have been back to breakeven within a month.
