Is Now a Good Time to Invest in the Stock Market?

With the S&P 500 hovering near record highs at 6,857 points and up nearly 17% for the year, many investors are asking the same question: Is now really a good time to jump into the stock market?

It's a question we hear constantly at Fox Hill Wealth Management: "Is now a good time to invest in the stock market?" and the answer might surprise you.

The Market Is Always Near All-Time Highs

Here's something most people don't realize: throughout market history, the S&P 500 trades within 5% of an all-time high about 25% of all trading days. In other words, the market is almost always hovering near record territory. If you're waiting for the "perfect" entry point, you might be waiting forever.

The real question isn't about timing the market - it's about time in the market. Unfortunately, we know too many people who told us that they were waiting for the next 2008 style downturn. Some people told us this was happening in 2017, others said 2020 but those people are still waiting - missing out on considerable gains. For example, since January 2017 the market is up 200%. Since January 2020, its up 104%.

Why Market Timing Doesn't Work

Remember last year when someone told you the market looked "frothy"? They missed out on a phenomenal year. History shows us that humans, despite our best intentions, are terrible market timers. When markets drop, our instinct screams to sell. When they rally, we want to pile in. It's the exact opposite of successful investing.

Think about Black Friday sales. Everyone rushes to buy when prices drop. But when the stock market goes on sale with a 20-30% discount? Most people panic and sell. It doesn't make sense, yet it goes against every psychological grain in our bodies.

Based on J.P. Morgan research, if you were invested in the general stock market between July 2004 and July 2024 and stayed full invested you would've experienced a 10.5% annualized return. However, if you missed the top 10 best days that return would've dropped to 6.2%. Miss 20 of the best days because you're trying to time the market and it drops to 3.6%. Missing the 30 best days drops your return to 1.4%. What makes this even more powerful is this fact: 7 out of 10 of the best market days occurred within two weeks of the worst days.

Six of the best days happened during bear markets or within weeks of major crashes. For example:

• During the 2008 financial crisis

• During the COVID crash in 2020

• During Liberation Day in 2025

The point is clear, trying to time the market is an impossible task.

The Right Approach: Stay Selective and Diversified

Simply put, our approach for our clients is a long-term investment horizon while making sure your short-term needs are taken care of, so you never have to sell in a down market.

If you're thinking about investing now, here's what matters most:

Your time horizon is everything. If you're investing with a 3-5+ year timeframe, market highs shouldn't scare you away. Companies today have stronger fundamentals and better margins than during previous market peaks. We're nowhere near the valuation levels seen during the 2000 tech bubble.

Diversification remains critical. Don't pile everything into tech stocks just because AI is dominating headlines. Even in a strong market, being selective about what you own matters more than ever.

Keep your short-term needs covered. Make sure you have adequate cash reserves for near-term expenses. This allows you to stay invested through market volatility without being forced to sell at the worst possible time.

What We Tell Our Clients

At Fox Hill Wealth Management, we've guided clients through multiple market cycles and downturns. The biggest value we provide isn't picking the perfect stocks (although we are proud of our performance) it's keeping clients invested when their emotions are screaming to sell.

By the time the market drops 30%, all that negativity is already priced in. That's typically an excellent buying opportunity, but only if you have the conviction to act on it. Most investors don't, which is why working with experienced wealth managers makes such a difference.

The bottom line? Yes, now can be a good time to invest - if you have the right strategy, proper diversification, and most importantly, the discipline to stay the course regardless of short-term market movements.

Disclaimer: This content is for educational purposes only and does not constitute investment advice. Fox Hill Wealth Management provides personalized wealth management services. Every investor's situation is unique. Please consult with a qualified financial advisor before making investment decisions.

Ready to discuss your investment strategy? Contact Fox Hill Wealth Management at hello@foxhillwealth.com or schedule a consultation to learn how we help clients navigate market uncertainty with confidence.