How To Invest When The S&P 500 Hits All-Time Highs?

The S&P 500 is up 12.36% this year.

And it seems like the index is hitting new all-time highs every month.

To quote Don Draper in Mad Men, “Even though success is a reality, its effects are temporary.”

And because the S&P 500 is doing well, there’s a lot of fear-mongering surrounding it. “The market’s too high!” “Stocks are due for a correction!” “It’s going to be the 2008 crash all over again!”

Here’s the thing…

The market has hit new all-time highs every year for the past 10+ years.

And there’s been nonstop fear-mongering all the way up.

Market-timers and permabears have gotten poorer during this time due to inflation and opportunity cost. Meanwhile, normal people who dollar-cost average into index funds have consistently growth their net worth.

There are a few reasons for this…

Most activities in life are biased towards optimism. Think Wayne Gretzky’s quote, “You miss 100% of the shots you don’t take.” Betting against the market is a bet against innovation and creativity.

New technologies continually help businesses save, or make, money.