Summer is here once again with its ubiquitous combinations like mosquitoes and barbeques, lightning and thunder, swimming pools and sunshine. One exciting pairing for 2019 that has been far less common, in fact it hasn’t happened since the early 1990s, is an American League-leading Minnesota Twins and equity market all-time highs.
As a lifelong Minnesota sports fan, and having experienced what felt like greatness coming up short one too many times, it’s easy to be conditioned to feel that the only place to go when you’re on top is straight down. What’s amazing is that more often than not, when markets are at their peak, they typically climb higher.
Granted, they’re not immune from loss like the proverbial wide right field goal or the future impact that can be felt when a franchise player is traded, but it’s important to note that the S&P 500 has held up its end of the bargain in reaching new highs more than 500 times since the last confluence of the aforementioned milestones. The data in the chart below shows that markets reward investors for remaining invested, regardless of where they start.