Three key takeaways
- A record high alone does not decide whether an investment suits you.
- Historical index evidence is not a forecast of product returns.
- Set an entry plan around your goals, timeframe and ability to bear losses.
A record high alone is not enough to decide whether to invest. Historical research illustrates the cost of staying out indefinitely, but your goals, cash needs, investment risks and entry plan still matter.
Explore the review framework
A practical starting point
A record high alone is not enough to decide whether to invest. Historical research illustrates the cost of staying out indefinitely, but your goals, cash needs, investment risks and entry plan still matter.
- Ready money
Protect cash needed for emergencies and near-term spending.
- Suitable risk
Choose investments and an amount you can hold through volatility.
- Entry plan
Compare immediate investment with a fixed schedule.
Choose the next step that fits your own circumstances.
General education. Your circumstances, documents and applicable terms determine what applies.
A record high is not a complete valuation assessment
A record high means an index has passed its previous peak. It does not, on its own, establish whether the underlying businesses are attractively valued or whether the investment suits you. A market can continue rising or fall sharply after a high.
What the historical example actually tested
Schwab’s July 2025 study compared hypothetical investors who received US$2,000 each year during 2005–2024. Their approaches included immediate investment, monthly investment, buying at each year’s peak and remaining in Treasury-bill cash investments.
In that example, investing at each year’s peak still finished ahead of remaining in cash. That cash investor never entered stocks: this does not prove that buying now always beats a defined wait-for-a-dip strategy.
The example assumes reinvested dividends and interest, excludes taxes and fees, and uses US-market data. Yearly peaks can only be identified with hindsight. It is historical illustration, not a forecast or a product return.
Why use the S&P 500 as an example?
The S&P 500 provides a recognised reference for large US companies. It is an index, not a policy or a complete personal financial plan. A fund, ETF or insurance product has its own holdings, costs and terms. Do not transfer index returns directly to another product’s expected outcome.
For a Singapore investor, exchange-rate movements can affect the SGD value of a US-dollar investment. US equity exposure also differs from a portfolio diversified across markets and asset classes.
Invest at once, gradually, or keep the money accessible?
| Approach | Trade-off to understand |
|---|---|
| Invest an available lump sum | More money participates immediately, with the full amount exposed to a near-term decline. |
| Invest on a fixed schedule | Spreads entry dates and may make starting easier; uninvested cash can miss gains. It does not prevent losses. |
| Keep money accessible | May fit emergencies or near-term spending. Distinguish this purpose from indefinitely waiting for a better market price. |
Investing monthly from your salary is different from delaying an already available lump sum. Choose the amount, timetable and investment mix before reacting to daily headlines.
What if the market falls after you invest?
Before buying, consider whether a substantial loss would disrupt your commitments or lead you to sell in panic. When prices move, revisit your timeframe, cash needs and investment rationale. Holding, reducing risk or rebalancing should follow a review; “never sell” is not a universal rule.
Where an adviser can help
DIY ETFs may suit people who want to select and manage their own investments. Advice can help connect investment choices to your wider goals, affordability and review process. Compare the scope and total costs of each route. Adviser-supported products should not be assumed to outperform an index or lower-cost alternatives.
Past performance does not guarantee future results. This article does not recommend buying the S&P 500 or any particular product today.
What to prepare for a review
- Goal and intended withdrawal date
- Available amount after cash reserves
- Existing holdings and investment costs
- The decline you could tolerate without disrupting commitments
Keep sensitive documents secure. Use the contact form to share your priorities, then agree how to provide any records needed for the review.
Sources & further reading
- Charles Schwab — Does Market Timing Work? (18 July 2025)
- MoneySense — Managing investment risk
- MoneySense — Behavioural science and investing
- MoneySense — Guide to ETFs
These sources provide general background. The review questions and checklists are educational commentary. Check the current official guidance and your own documents before acting. This guide is not a personal financial or legal recommendation.
Have a question about your own plans?
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