Investing at all-time highs - 28th August 2025

Scared of investing when the stock market is at an all-time high? You shouldn’t be!

Global equities have had a good run so far in 2025 despite some tariff related wobbles earlier in the year, geopolitical tensions and concerns over the high cost of equities. In fact, many equity markets are trading at, or near, all-time highs. (source 1)

The thought of investing in a stock market at an all-time high can be daunting, but should it be? Fortunately, the team at Schroders – one of Omnis’ key investment partners – has pored through 100 years of US market data and concluded that investing at an all-time high isn’t always a bad thing.

The market reaches an all-time high more often than you might think. Of the 1,187 months since January 1926, the market was at an all-time high in 363 (31%) of them. (source 2)

Schroders’ calculations show that, on average, 12-month returns following an all-time high were better than returns when the market wasn’t at an all-time high (see Figure 1 below). Returns on a two or three-year horizon were similar, regardless of whether the market was at an all-time high or not.

Impact of compounding returns

A $100 investment in the US stock market in January 1926 would’ve been worth $103,294 at the end of 2024. That suggests growth of 7.3%, even accounting for inflation. (source 3)

Conversely, the same investment coupled with a strategy that sold stocks each time the market reached an all-time high and shifted the proceeds into cash for the next month before reinvesting once stocks dipped below a record high would only be worth $9,922 (Figure 2). That’s 90% lower. (source 4)

This analysis covers almost a century which is far longer than most people plan for. Even over shorter horizons, investors would have missed out on significant wealth growth if they’d attempted to sell at the top of the market.Don’t fret over all-time highs

The idea of investing during all-time highs can be daunting, but this data shows that average multi-year performance following a record high has been historically attractive. Timing the market is risky, as shown by the long-term impact of compounding returns. The current outlook for markets might have you feeling uneasy, but we want to reassure you that all-time highs might not be something you need to worry about.

Issued by Omnis Investments Limited. This update reflects the views of Omnis at the time of writing and is subject to change. The document is for informational purposes only and is not investment advice. We recommend you discuss any investment decisions with your financial adviser. Omnis is unable to provide investment advice. Every effort is made to ensure the accuracy of the information but no assurance or warranties are given. Past performance should not be considered as a guide to future performance.

The Omnis Managed Investments ICVC and the Omnis Portfolio Investments ICVC are authorised Investment Companies with Variable Capital. The authorised corporate director of the Omnis Managed Investments ICVC and the Omnis Portfolio Investments ICVC is Omnis Investments Limited (Registered Address: Washington House, Lydiard Fields, Swindon SN5 8UB) which is authorised and regulated by the Financial Conduct Authority.