As the S&P 500 approaches 7,000 and the Dow Jones nears 50,000 in early 2026, many investors are wondering: Is now the time to sell? Stock market all-time highs often trigger anxiety, but historical data reveals a surprising truth about investing during record-breaking periods. This article explains why market peaks are a normal part of long-term investing and how to make smart financial decisions when your portfolio reaches new heights.
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With the S&P 500 trading right around 7,000 and the Dow Jones Industrial Average nearing 50,000, two of the most closely followed market indices are approaching psychologically significant round numbers, while also setting new all-time highs. Moments like these often prompt investors and commentators alike to pause and question whether such growth is justified.
Why Stock Market All-Time Highs Are Normal
It’s worth acknowledging that as account balances rise, so too can investor discomfort. Those who feel uneasy during market downturns often experience a different kind of unease when markets continue to rise amid uncertainty. How long can this last? The concern is understandable, especially when headlines frame record highs as a warning sign, implying a pullback must be close behind. History, however, offers a more nuanced perspective.
One of the more counterintuitive realities of long-term investing is how frequently markets operate near record levels. All-time highs are not rare or fleeting events; they are a natural byproduct of economic growth, innovation, and rising corporate earnings. In fact, without regularly reaching new highs, long-term investing would not work. Progress, by definition, requires markets to move into uncharted territory, often while climbing what’s commonly called the “wall of worry.”
Historical Context: Markets Climb the Wall of Worry
Looking across decades of market history, new high round numbers have rarely marked the end of a cycle. More often, they have appeared during periods of expanding earnings, improving productivity, and growing confidence in the future. That does not mean markets move in a straight line. Pullbacks, corrections, and volatility are normal and inevitable. They are also very different from permanent loss and notoriously difficult to predict with consistency.
The greater risk during periods of market strength is not that prices are high, but that emotions begin to drive decisions. Some investors retreat to cash after markets have already risen, hoping
to sidestep the next downturn. Others feel pressure to chase what has worked most recently, sacrificing diversification along the way. History suggests both responses can quietly erode long-term outcomes, especially when they pull investors away from a well-considered plan.
What Investors Should Do During Market Peaks
Rather than trying to anticipate short-term moves in the markets, our focus remains on what we can control. Diversification reduces reliance on any single outcome. Rebalancing helps manage risk as markets rise and allocations drift. Most importantly, decisions are anchored to long-term goals and time horizons, not headlines or month-to-month sentiment.
Periods when markets sit at all-time highs can feel unsettling precisely because they leave little room for obvious optimism or pessimism. But they also reinforce why discipline matters. Long-term success has never depended on perfectly timing exits and re-entries. It has depended on staying invested, managing risk thoughtfully, and maintaining perspective as markets continue their uneven progress forward.
Strategic Financial Planning Opportunities at Record Highs
These periods can also create opportunities to revisit broader financial plans. Is it time to reassess debt repayment priorities? Could selling an asset improve cash flow and accelerate other goals? Does it make sense to revisit charitable or legacy planning, such as pre-funding a donor-advised fund? Or to rebalance toward an allocation better aligned with the next phase of life?
Staying Disciplined Through Market Cycles
Record highs are neither a signal to abandon a plan nor a reason for complacency. They are simply another phase of the market cycle and an opportunity to review and refocus. Our role is to help clients remain grounded and intentional through it all, so short-term noise does not derail long-term progress. As always, if anything is on your mind, please don’t hesitate to reach out.
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