Last Week’s S&P 500 All Time High: A Different Perspective

The US stock market has officially recovered from the 2022 bear market – with a new S&P 500 all-time high. The index tracks the growth of the 500 biggest stocks in the US. Last week, it finished trading at just under 4,840 points – about 20 points above its peak in January of 2021. 

This has some investors cautious. If the index is trading at its highest price ever, surely it’s time to sell US stocks? 

A different perspective: the inverted S&P 500 chart

The chart below looks at this question from a different angle. It shows the S&P 500 index drawn upside down (inverted) since 1957 when it first started trading. Apart from a few nice rallies here and there, it’s pretty much trended down for the past 60 years. 

So ask yourself this question: would you buy an investment with a chart that looks like this? If your answer is “no”, you probably wouldn’t want to sell US stocks right now (assuming you’re a long-term investor).

We all know the saying: don’t try to catch a falling knife. Well, we probably shouldn’t try to jump off a rising rocket either.

As usual, none of this is investment advice. It’s just my interpretation of a price chart. But if you’d like to get these interpretations in real time, just subscribe below.