Investing at Market Highs and Bear Market Concerns

The third quarter results in the markets were once again better than average! 
Since 2022, the markets have been resilient to many changes and challenges. Just this year the S&P experienced a bear market scare in April, only to come charging back until the last week or so (both dips are related to tariffs). 
 
When markets reach new highs, we are sometimes asked about the wisdom of investing at the “top.” If you are a long-term investor, here’s why that shouldn’t be a big concern:

On a related note, Justin recently shared an article that had some good observations about market highs and the uptick of bearish expectations. 
“Expecting a drawdown that falls short of an outright bear market while prices are near record highs doesn’t meet my definition of being “bearish.” In fact, I would argue that expecting such declines in the near term is a critical part of a thoughtful, longer-term bull thesis because these moves happen all the time."  - Sam Ro  
 
In other words, no upturn happens with only positive days. Likewise, no downturn happens with only negative days. 
 
As long-term investors, we know we will experience a number of market cycles over time. History shows that it is a mostly positive experience, with near certainty of some rough years too. (That’s as close as I’ll get to using the word ‘certainty’ in an investment context!) 
 
If you are feeling uncertain about the markets and your portfolio, adjusting your portfolio during a positive market cycle is preferrable than panicking once a big downturn occurs. Don’t make big changes based on sentiment. Make them based on core shifts in risk tolerance and time horizon toward your goals. Let us know if you ever want to discuss your portfolio in more detail. 
 
With all that being said, let’s celebrate the last quarter!