When the market is on a tear, it’s tempting to sit back and wait for a pullback. But smart investors know that the best strategy isn’t timing the market — it’s time in the market.
The market hitting new highs actually isn’t uncommon. In fact, a J.P. Morgan study found that since 1950, the S&P 500 hit a new high on about 7% of its trading days. Meanwhile, on nearly a third of the days it hit a new high, it never traded below that price again.
That’s why dollar-cost averaging is so important. And one of the best investment vehicles to use this strategy with is exchange-traded funds (ETFs). By consistently investing in high-quality ETFs, regardless of market swings, you give yourself the best shot at building serious long-term wealth.