The US Stock Market is at an All-Time High. Should you stay or go?

by Kacie Swartz | Sep 17, 2018

In August, the S&P 500 stock market index hit an all-time high for the second time this year. This is the latest in many all-time highs we have enjoyed over the past eight years of "bull markets".

These kinds of long runs can sometimes lead to the question, “Is now the time to change my investment strategy?

Look at the chart below. The green parts indicate how often we have been within 1% of an S& P 500 All-Time High (ATH).

Stock Market Growth

See how there is more green than any other color? We have spent 36% of the last 68 years within 1% of ATH.

There is no guarantee this pattern will continue, but the big takeaway here is that in the past several decades, the US stock market has done well. And most of the time, the market is within 5% of its ATH.

What do we do with this information? We realize that it's impossible to guess when we should jump in or jump out. Trying to time the market can only increase your chances of missing the best days of market returns.

So if recent market news is worrying you, let's revisit your PERSONAL investment strategy. Maintaining a diversified, disciplined investment strategy tailored to your specific requirements is the best defense against market fluctuations.