History shows that new highs do not necessarily signal an upcoming correction.
Market Records Are Also Part of Long-Term Growth
All-time highs have been common during bull markets.
Seeing the market at all-time highs can create caution, but history offers a different perspective. Since 1957, the S&P 500 has closed at a new high more than 1,300 times, or approximately once every 13 days. Rather than being an isolated sign of overvaluation, record highs have been a natural part of the market’s long-term trajectory, supported by corporate growth and earnings.
Between 1989 and 2025, investing at a new S&P 500 high generated subsequent annualized returns of 13.3%, 12.2%, and 11.5% over one, three, and five years, respectively. These results exceeded those following investments made on non-market-high days. History suggests that trying to anticipate a correction solely because the market has reached a record high could mean missing opportunities.
All-Time Highs
History shows that new highs do not necessarily signal an upcoming correction.
Market Records Are Also Part of Long-Term Growth
All-time highs have been common during bull markets.
Seeing the market at all-time highs can create caution, but history offers a different perspective. Since 1957, the S&P 500 has closed at a new high more than 1,300 times, or approximately once every 13 days. Rather than being an isolated sign of overvaluation, record highs have been a natural part of the market’s long-term trajectory, supported by corporate growth and earnings.
Between 1989 and 2025, investing at a new S&P 500 high generated subsequent annualized returns of 13.3%, 12.2%, and 11.5% over one, three, and five years, respectively. These results exceeded those following investments made on non-market-high days. History suggests that trying to anticipate a correction solely because the market has reached a record high could mean missing opportunities.