What do market all-time highs mean for the investor?
Navigating market all-time highs: Learn why these peaks shouldn’t deter your investments and how staying invested through highs and lows leads to long-term growth.
The common adage “buy low, sell high” seems to imply that you should sell now because the market can’t go any higher. History shows us that the market is always hitting new highs.
The data doesn’t lie. The longer your investment horizon, the greater the likelihood of positive returns. So, get invested and stay invested.
1 The information presented in this infographic is for illustrative purposes only, and reflects the historical all-time highs of Dimensional Fund Advisors Global Equity Portfolio (DFA607) between January 1, 2012, and July 16, 2024. Past performance is not indicative of future results. Investment values may fluctuate, and investors may experience gains or losses. This infographic does not constitute financial advice or a recommendation to buy or sell any securities. Before making any investment decisions, please consult with a qualified financial advisor to assess your individual investment objectives, risk tolerance, and financial situation.
2 Past performance is no guarantee of future results. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. In US dollars. For illustrative purposes only. New market highs are defined as months ending with the market above all previous levels for the sample period. Annualized compound returns are computed for the relevant time periods subsequent to new market highs and averaged across all new market highs observations. There were 1,175 observation months in the sample. January 1926–December 1989: S&P 500 index, Stocks, Bonds, Bills and Inflation Yearbook™, Ibbotson Associates, Chicago. January 1990–present: S&P 500 index (total return), S&P data © 2024 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved.
3 Percentage of positive and negative 1-day returns are calculated using S&P 500 Index returns from 1/1/1990 to 12/31/2023 and include 8,565 days in the sample. Percentage of rolling 1-, 5-, 10-, and 15-year holding periods with positive and negative returns are calculated using S&P 500 Index monthly returns data from January 1926 to December 2023. There were 1,176 observation months, 1,165 rolling 1-year periods, 1,117 rolling 5-year periods, 1,057 rolling 10-year periods and 997 rolling 15-year periods in the sample. S&P data © 2024 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. Past performance is not a guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio. In USD. For illustrative purposes.
