Afraid of Heights?
Don't be. This is What Healthy Markets Should Do.
Happy Monday! It looks like US markets are setting records again. So, I couldn’t help commenting.
Every time the S&P 500 or Nasdaq hits another all-time high, headlines flare up like the financial equivalent of oxygen masks dropping from the ceiling. “The market’s never been higher!” they gasp.
True! But also: that’s what healthy markets do.
By my calculation, both the S&P500 and Nasdaq have closed at all-time highs ~24 times in 2025 alone! That’s perfectly normal.
📈 Highs are normal in bull markets
In a bull market, record closes tend to cluster. Think of it less like a single rarefied peak and more like climbing a staircase - you’re supposed to keep stepping higher. After all, if the market didn’t make new highs, it would still be trading at 1982 prices!
🏔️ The myth of “too high”
Investors often worry that “new high” equals “about to crash.” History says otherwise. Sometimes a new high is followed by a stumble (normal), but most of the time it’s just one of many more to come.
New highs aren’t cliffs…they’re mile markers.
🧘🏼♂️ How to handle the altitude
Stay calm. Don’t let headlines rattle you.
Take cash if appropriate. If you’ve been meaning to set aside cash for big expenses, a new high is a fine moment.
Re-balance, not retreat. If stocks have run ahead of your plan, shift some gains into other buckets. That’s called discipline, not panic.
Reflect on your plan. Let your long-term plan guide your next decision. And yes, taking no action is considered a “decision.”
👉 The punchline
Being “afraid of heights” in investing means you’ll never enjoy the view. New highs don’t mean the sky will fall - they mean the sky is still there.
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It’s so true…..
choosing not to act still shapes the outcome. Sometimes awareness of that makes us more intentional.
Thanks for sharing!