Years ago, I wrote a blog post during a market downturn titled “In All of Time”. It’s central point? Every all-time high reminds us that markets recover – and dip – repeatedly. With another all-time high recently behind us (as measured by the S&P 500 – on July 3, 2025 as of this writing), it’s worth revisiting this idea – this time from the peak.
The original post tells us that all-time highs should be a reminder that the market has always recovered from periods of market stress. It makes us feel good when we get through that recovery and hit a new all-time high but there is an underlying pattern. Markets always experience another period of market stress! Every day is not another new all-time high, so by definition, we will inevitably experience downturns or sideways movements in between all-time highs. That means when we experience a new high, we should be expecting and not be surprised by the next downturn.
Just like we don’t often know in the moment why the market is driving forward to new heights, we won’t be able to predict when the mood will change. Sometimes it is a news item (e.g., big tariffs announced, conflict breaking out somewhere, etc.) but just as often enough investors simply decide the market has gotten ahead of itself and pull back. The point is not to guess when the actual peak will occur, but simply to recognize that our emotions should drive our behavior in reverse. When the market is rising, we might take a more cautious stance and get a little more conservative with our investing behavior. When the market is falling, we do the reverse and get more optimistic with our actions.
These moves don’t need to be big or in fact, anything at all. But having this contrarian stance should guide your investing decisions. For example, let’s say you just received an inheritance or sold a property giving you cash to invest. How and when should you invest it? The answer depends on where we are at the moment. If we are at/near an all-time high, that is a time when it may make sense to spread investments out over time. If we are in or just recently experienced a downturn, we might choose to invest all at once or over a shorter period of time. We get to the same place in the end, but the path we choose should reflect the opposite of the current market conditions.
Every all-time high is proof of two things: volatility is inevitable, and resilience is powerful. When you Invest With A Plan, you use both to your advantage.
The strategies mentioned may not be appropriate for all investors. Please consult your financial advisors to determine a strategy that works best for you. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. Past performance is not a guarantee of future results. S&P 500 – A capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. You cannot invest directly in an index.
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