Should You Buy ETFs at All-Time Highs? Here's What History Says

Market Performance - The stock market has recently reached new heights, with the S&P 500 and Nasdaq Composite surging approximately 26% and 35% respectively since early April [1][2] Investment Risks - Investing at record highs can be risky due to high stock prices and potential downturns that could lead to immediate portfolio value drops [2][10] - Historical data suggests that investing in ETFs at peak prices can still yield positive outcomes for long-term investors [2][4] Long-term Investment Strategy - Historical trends indicate that there is no bad time to invest if a long-term perspective is maintained [4][11] - For instance, investing in an S&P 500 ETF before the Great Recession would have resulted in a 75% total return over 10 years despite initial losses [5][6] - The S&P 500 has never experienced negative total returns over any 10-year period in the last 82 years, although it has seen negative returns in 33% of one-year periods [8][9] Portfolio Preparation - To navigate market uncertainty, investors are advised to ignore short-term fluctuations, build an emergency fund, and invest in fundamentally strong companies [10][12] - Investing in robust companies or S&P 500 ETFs is recommended as they are more likely to withstand market volatility [12]