The Cost Of Waiting For A Better Entry

It may not matter when you invest. At least, that’s what the data since 1988 suggests. Investing when the market is at an all-time high has historically produced returns similar to, and sometimes even better than, investing on any other day. The reason is that all-time highs tend to be followed by more all-time highs. While waiting for a pullback may feel safer, the data suggests that trying to time the market can come at the cost of missing further gains. Sometimes, the best time to invest is simply when you have the money to do so.

Source: Guide to the Markets

This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.

**"Invest on any day" represents average of forward returns for the entire time period whereas "Invest at a new high" represents average of rolling forward returns calculated from each new S&P 500 high for the subsequent 3-month, 6-month, 1-year, 2-year, 3-year and 5-year intervals, with data starting 1/1/1988 through 12/31/2025.