I am sure you have been seeing headlines about the market hitting "all-time highs." When the market hits all-time highs, it’s natural to think, “Great… I just bought at the top" or "Should I sell while the market is high and buy back lower?" But history says ignore the noise. Since 1975, buying at a record high has delivered returns nearly the same long-term as buying on any random Tuesday. In fact, five years later, the average return from buying at a high is about 83%. So, turns out “buying at the top” hasn’t really been that bad...
And those all-time highs? They’re not rare unicorns. About 7% of trading days end at records, and a good chunk of those “tops” end up becoming new floors the market barely dips below. Layer on the fact that Q4 is usually one of the strongest stretches of the year (December has a habit of playing Santa), and suddenly staying invested and putting money to work feels a lot smarter than trying to time everything.
Check out this piece from our friends at First Trust. It’s pretty neat!
I have been telling people since I was in the business 10+ years ago that you will see the DJIA hit 60k, 70k, and 80k at some point. Don't believe me? Let me show you these cool stats.
| Index | Jan 1, 2010 Closing Level | Aug 29, 2025 Closing Level | Change (%) |
|---|---|---|---|
| Dow Jones Industrial Average (DJIA) | ~10,430.69 | 45,544.88 | +337% |
| S&P 500 | ~1,132.99 | 6,460.26 | +470% |
| Nasdaq Composite | ~2,308.42 | 21,455.55 | +830% |
Interesting, right? Crazy how far we have come!
The AI Trade & What’s Next
Markets rise for all kinds of reasons, like corporate earnings, interest rates, and investor confidence, but right now, the big spark is AI, and we all know it.
My opinion on this AI trade? Well, I’m in the camp of “cautious short-term, massive longterm.” Sure, today’s AI "hype" feels a bit over the top to me, but if you zoom out, the potential is enormous, likely bigger than most of us can imagine today.
Bottom line? Don’t sweat the daily noise. Every market era has its engine. Railroads. Oil. The internet. Fantasy football (okay, maybe not that one). This time, it looks like AI. So, I wouldn't run from it. I would own it, and the good news for our investors is: we do.
Let's see what Q4 has in store for us in terms of the market. For now, I am looking forward to the fall weather we will be getting, I am sure you are too!
Until next time,
Wes
Securities offered by Alexander Capital LP Member FINRA/SIPC……. The above summary has been obtained from sources we believe to be reliable, but we cannot guarantee its accuracy or completeness. Past performance is no guarantee of future results. The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual.