Should You Invest in an S&P 500 ETF When the Market Is This Close to All-Time Highs? The Answer Is Surprisingly Simple.
Key Points
The S&P 500 has reached a new all-time high 27 times this year.
However, trying to time the market is more akin to gambling than true investing.
Investing through ups and downs has proven to be one of the best ways to build wealth over time.
There has been a lot of noise in the economy and stock market this year, but the S&P 500 (SNPINDEX: ^GSPC) -- the stock market's most important index -- is up 12.8% through Sept. 7 and trading near its all-time high. The S&P 500's performance has some investors feeling both grateful (who doesn't appreciate double-digit percentage gains?) and anxious, with a sense of "when will the run inevitably end?"
With the S&P 500 flirting with its all-time high, is now the time to fall back or continue investing in an S&P 500 ETF? It's almost certainly always the latter.
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The S&P 500 isn't new to all-time highs
What can sometimes surprise investors is just how often the S&P 500 has set all-time highs recently. In 2026 alone, it has set a new all-time high 27 times. That's one for every roughly 6.3 trading days leading up to Labor Day weekend. Here are the dates and what the S&P 500 closed at (note: S&P 500 ETFs trade in dollars, but the S&P 500 index is measured in points):
- Jan. 7: 6,920.93
- Jan. 12: 6,977.27
- Jan. 27: 6,978.60
- Feb. 25: 6,981.45
- April 15: 7,022.95
- April 16: 7,041.28
- April 17: 7,126.06
- April 22: 7,137.90
- April 24: 7,165.08
- April 27: 7,171.91
- April 30: 7,209.01
- May 1: 7,230.12
- May 5: 7,259.22
- May 6: 7,365.12
- May 8: 7,398.93
- May 11: 7,412.84
- May 13: 7,444.25
- May 14: 7,501.24
- May 26: 7,519.12
- May 27: 7,520.36
- May 28: 7,563.63
- May 29: 7,580.06
- June 1: 7,599.96
- June 2: 7,609.78
- Aug. 4: 7,736.52
- Aug. 7: 7,757.64
- Aug. 13: 7,798.99
Selling on Jan. 27 would've cost you 6.2% in gains by May 11; selling on April 15 would've cost you 11.1% by Aug. 13; and selling on Jan. 2 would've cost you 12.7% by Aug. 13.
These percentages will inevitably vary based on comparison dates, but the larger point is that an all-time high doesn't automatically mean a pullback is on the horizon. Selling because you think it's coming could mean leaving gains on the table.
Image source: Getty Images.
Trust the long-term process
If timing the market -- such as selling because you anticipate a drop or buying because you anticipate a surge -- were easy, a lot more investors and Wall Street firms would make a lot more money (or at least lose less of it). It's often counterproductive to even try because it's more gambling than anything.
Whether it's hitting new all-time highs or experiencing a bear market, I'd trust consistently investing in an S&P 500 ETF, as it has historically tracked the growth of the U.S. economy. That doesn't make it foolproof, but it definitely makes it one of the safer long-term bets on the market.
The best thing investors can do is remain invested and trust that the S&P 500 will continue to grow over time, with inevitable swings along the way.
Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.