Written by Jacob Bakshi 
Jacob Bakshi
CFD & Options Trading Specialist
Trading CFDs and options has been my playground for years, and I love helping others understand these powerful tools and what makes the financial world tick. My work mostly focuses on giving traders the confidence to make informed decisions with unbiased reviews into platforms that prioritize fair pricing, advanced tools, and reliable execution because In fast-moving markets, every detail matters. I have a background in market analysis and risk management, and I’m always on the lookout for brokers that offer the right tools for serious traders. using our CLEAR™ Methodology The CLEAR™ Score (Credibility, Leverage, Execution, Accessibility, Regulation) is our proprietary ranking system. The CLEAR™ Score provides you with the most accurate and transparent broker ranking after evaluating all the key factors that are crucial for trading success. .
Last fact check on July 21, 2025 by
Shaun David 
Shaun David
Regulation • Trading Algorithms • Market Analysis
I’m extremely passionate about the financial markets and working with innovative technology that makes trading better and safer. Since joining the CleaRank team, my primary role is working with real-time broker performance data using the CLEAR™ technology and broker evaluation methodology. I investigate brokers by testing their platforms and uncovering hidden risks and costs. My end goal is to level the playing field for traders and With an extensive background in market analysis and algorithmic trading, I’m qualified to find what matters most to traders.
Should You Invest in the S&P 500 When It’s at an All-Time High?
Key Points
The Instinctive Hesitation
The instinct is almost universal. When markets hit new highs, investors hesitate. Headlines scream “record levels,” and the first question many ask is whether it’s already too late. Should you invest in the S&P 500 at its peak or wait for a dip?
Most investors would automatically say it’s better to wait. That logic feels safe. But the data says otherwise.
What the Data Shows
A historical analysis of the S&P 500 going back 36 years reveals that investing at market peaks has often delivered better returns than investing on an average day.
Here’s what the numbers look like:
Average Returns After Buying at All-Time Highs
Historical performance insights.
| Time After Buying at an All-Time High | Average Return |
|---|---|
| 1 Year Later | 13.5% |
| 3 Years Later | 44% |
| 5 Years Later | 82% |
By comparison, if you had bought the index on any random trading day, your returns would have been:
Average Returns After Buying on Any Day
Historical performance insights.
| Time After Buying on Any Day | Average Return |
|---|---|
| 1 Year Later | 11.8% |
| 3 Years Later | 39% |
| 5 Years Later | 74% |
In other words, investors who bought at all-time highs consistently came out ahead over those who waited for supposedly better moments.
Why This Happens
There are three core reasons this pattern holds true across decades of data:
S&P 500 Total Return Index – Average Forward Total Returns
(September 1989 – July 2025)
What’s the 2025 Outlook?
As of mid-2025, the S&P 500 is trading near record highs, buoyed by stronger-than-expected GDP growth, resilient corporate earnings, and optimism around artificial intelligence and automation.
With inflation cooling and the Federal Reserve indicating a more stable rate environment, institutional capital is flowing back into equities. The rotation toward large-cap tech and diversified growth funds is accelerating.
CleaRank’s equity research team currently maintains a bullish near-term outlook for the S&P 500, projecting continued strength through Q4 driven by:
Shaun David: “Hesitation Is a Hidden Cost”
Shaun David, Head of Broker Integrity and Market Analysis at CleaRank, weighs in:
“Investing is about probabilities, not feelings. The idea that record highs are dangerous comes from fear, not data. Over decades, markets reward long-term conviction far more than short-term perfection.”
He adds:
“The biggest missed gains often come from waiting on the sidelines. Investors who delay because they fear new highs are often ignoring the very momentum that drives long-term compounding.”
The Evidence is Conclusive
Should you invest in the S&P 500 when it’s at an all-time high? The evidence is clear. While no timing strategy is perfect, investing at new highs has historically delivered superior results compared to trying to wait for a dip.
Rather than fearing momentum, smart investors learn to respect it.
FAQ
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always do your own research.
Jacob Bakshi
I’m Jacob and I specialize in CFDs, options trading, and market analysis. Over the years, I’ve developed a deep understanding of the risks and rewards that come with trading derivatives and survived enough volatility to know that trading is like skydiving: thrilling, but you’d better trust your parachute (or broker). I use CleaRank’s Methodology to test brokers based on their offerings and ensure traders that visit our site have access to brokers that align perfectly with their trading strategies.
