Is It Smart to Buy Stocks With the S&P 500 at an All-Time High? History Has a Clear Answer.

Group 1 - The S&P 500 has rebounded strongly since October 2022, driven by technology recovery, consumer spending, and corporate profit recovery after the bear market of 2022 [1][2] - AI stocks, particularly mega-cap companies like Nvidia, Microsoft, and Apple, have led the market rally, with other sectors like industrials, energy, and healthcare also participating [2] - The current market conditions raise questions about the wisdom of investing at potential market peaks, but historical data suggests that all-time highs are not necessarily indicative of an impending market crash [3][4] Group 2 - The S&P 500 has recorded over 1,200 all-time highs since its inception, primarily during strong bull markets, reflecting long-term growth in earnings and innovation [5] - Historical trends indicate that avoiding investment due to fear of market peaks can be more costly than accepting short-term volatility, as long-term returns remain strong even when buying at record highs [6] - For cautious investors, diversification and balance are crucial strategies when investing at market peaks, with equal-weighted S&P 500 ETFs providing broader exposure to various stocks [8][10]