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Market action on Friday, June 4 was, in a word, forgettable as the S&P 500 and Nasdaq-100 indexes slid 2.64% and 4.18%, respectively, and that was on a day on which the May jobs report was better-than-expected. Previously high-flying semiconductor stocks were among the day’s most egregious offenders, giving investors considerable pause about what comes next.
Potentially making matters worse for market participants with short-term perspectives is the fact that June usually isn’t one of the better months for stocks. Put it all together and some investors may be thinking that they did well to sell stocks around the aforementioned indexes recently notched all-time highs.
In the words of the legendary college football analyst Lee Corso, “not so fast, my friend.” That’s the case because history confirms that with the S&P 500, selling because an all-time high is printed isn’t a good idea. It’s actually a bad move because highs beget more highs.
Here’s Hoping History Repeats
There’s no denying that last Friday’s slide was alarming and that June isn’t the best month for equities. However, stocks have proven resilient following 2025 and 2026 pullbacks and the buying after all-time highs history is compelling.
(Chart Courtesy: Nationwide)
Of course, there are no promises that simply because one record is hit it will soon fall and, in the essence of prudence, that should be acknowledged.
“A new all-time high for the S&P 500 neither guarantees further gains nor signals an imminent peak. Instead, it underscores a wide range of potential outcomes—where forward returns can vary meaningfully, even as the overall bias remains to the upside, as reflected in the average forward return of roughly 10%,” notes Nationwide’s Mark Hackett.
Sage wisdom to be sure and while some market participants may want to wait a few days or weeks to let the June 5 dust settle, they’d do well to remember that the next time a record high arrives, selling based on that factor alone is fool’s gold.
“Avoiding equities simply because markets are at or near all-time highs can carry a meaningful long-term cost. Historical data reinforces this point: since 2013, the S&P 500 has recorded roughly 461 new highs, yet over that same period has delivered cumulative returns of over 400%—with average annual gains near 15%,” adds Hackett.
Highs Can Bring Opportunity
And not just for buying more stocks, but for effectively rebalancing portfolios, too, which is a different ballgame than outright selling equities.
“Investors should view all-time highs as part of the market’s price discovery process, where expectations are continually recalibrated in response to evolving fundamentals and valuation dynamics, and the broader macro backdrop,” concludes Hackett. “In this environment, delaying investment decisions can quickly turn into market timing. A more effective approach is to maintain a disciplined, diversified rebalancing strategy—helping investors stay aligned with long-term goals.”
The point is time in the market matters while timing the market is a pain in the rear.
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